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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
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.

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