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Europe expects a recession unlike any since the Great Depression

PortandTerminal.com, May 6, 2020

“Economic activity in the EU dropped by around one-third practically overnight.” | EU is a major buyer of US aerospace products, computers/electronics and pharma products

BRUSSELS – EU officials have forecast “the deepest economic recession” in the bloc’s history as a result of the coronavirus. This year, the EU’s economy — comprising 27 member states — is expected to contract by 7.5%

The European Commission describes the downturn as a recession of historic proportions. Paolo Gentiloni, the Commissioner for the Economy called it “a shock without precedent since the Great Depression”.

**Paolo Gentiloni, European Commissioner for the economy said: ‘Europe is experiencing an economic shock without precedent since the Great Depression**

“It is now quite clear that the EU has entered the deepest economic recession in its history,” Gentiloni said. “Economic activity in the EU dropped by around one-third practically overnight.”

If lockdown restrictions remain in place for two months, some EU economies — including Germany’s — could shrink by up to 14%, according to a report published last month by the European Network for Economic and Fiscal Policy Research.

“A more severe and longer-lasting pandemic than currently envisaged could cause a far larger fall in GDP that assumed,” Gentiloni said.

The bloc’s executive arm predicts a recovery in 2021 but warns that the uncertainty is exceptionally high.