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Eurozone disaster: Brussels on alert as GDP plummets – worst drop ever

Gross domestic product contracted by 11.9 percent in the EU and 12.1 percent in its Eurozone single currency bloc. Spain, Portugal, Italy and France were the hardest hit as the extent of the economic damage caused by coronavirus pandemic shutdowns is revealed. Europe is facing its deepest recession since the Second World War as a result of the measures taken to curb the spread of the deadly disease.

The contraction in output across the EU is being shared unequally across its member states, analysts have warned.

Ulas Akincilar, head of trading at Infinox, said: “The sharp fall in European economic output recorded in the second quarter of 2020 is striking both for its speed and its universality.

“So far every single EU member state to have published its second quarter data has reported a major drop.

“Spain and Italy, the two countries hit earliest and hardest by the virus, are now squarely in the eye of an economic storm.

“Nevertheless the pain is being shared out unequally. The economic impact is hitting several of the bloc’s most indebted southern nations hardest, while Germany has had more success at containing both the human and economic cost.”

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