EU forecast: A deeper economic recession is expected, with wider divergences between member states

Despite a rapid and comprehensive EU and Member State response, the European Union’s economy is plunging into a deep recession this year due to the coronavirus pandemic, and as emergency measures are more restrained than expected, the crisis will have a stronger-than-expected impact on economic activity – the European Comission reported in its summer interim economic forecast published on Tuesday.

Presenting the forecast, Economic Policy Commissioner Paolo Gentiloni said that the eurozone economy is projected to shrink by 8.7 percent this year from a record 7.75 percent in the spring, and then it will increase by 6.1 percent in 2021 instead of the previous 6.5 percent. (MTI)