The euro zone economy will drop deeper into recession this year and rebound less strongly in 2021 than previously thought, the European Commission forecast today, with France, Italy and Spain struggling the most due to the Covid-19 pandemic.
The EU executive said the 19 nation single currency area would contract by a record 8.7% this year before rising by 6.1% in 2021.
In early May, the Commission had forecast a downturn this year of 7.7% and a rebound in 2021 of 6.3%. The Commission said it had to revise its previous forecasts because the lifting of Covid-19 lockdown measures in euro zone countries was proceeding less swiftly than it had initially predicted.