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The economy in the European Union will plunge deeper into recession for 2020 and may recover only slightly in 2021 than previously thought, the European Commission predicted on Tuesday. The downbeat assessment of Europe's economy comes as concerns piled over the U.S. recovery the surge of new coronavirus infections.
The EU executive said the 19-nation single currency area could contract by a record 8.7% this year before growing slighly by 6.1% in 2021. In early May, the Commission had forecast a 2020 downturn of 7.7% and a 2021 rebound of 6.3%.
The EU executive also significantly cut its earlier forecasts for France, Italy and Spain, which have been severely affected by the COVID-19 pandemic, and now expects now downturns in excess of 10% this year in each.
Economics Commissioner Paolo Gentiloni told a news conference that in order to reduce risks of a second recession, EU fiscal rules could remain frozen even after growth saw returns next year.
Gentiloni said that the rules may be reactivated only when the bloc's output returns to levels closer to that of last year. However, no decision has been made and the matter remains controversial.
The Commission also said its inflation forecasts were little changed, at 0.3% this year and 1.1% in 2021.
Thailand's finance ministry on Thursday cut back its 2020 economic forecast to a record 8.5% contraction in GDP. This is a substantial contrast from a 2.8% growth it expected in January as the COVID-19 situation continued to worsen. The ministry’s ...
European shares traded lower earlier on Thursday after underwhelming earnings reports dampened a U.S. Fed vow to continue rolling out stimulus plans in a bid to soften the economic blow of the COVID-19 pandemic. The pan-European STOXX lost ...
On Wednesday, European stocks rose slightly after mixed earnings reports. However, the new wave of the coronavirus outbreak kept investors cautious while they also wait for the U.S. Federal Reserve’s announcement. The Stoxx Europe 600 ...
European stocks traded slightly higher on Tuesday ahead of a U.S. decision to roll out additional stimulus plans despite the underwhelming quarterly earnings reports from the luxury goods market. The pan-European STOXX index inched higher ...
European shares fell earlier on Monday, weighed down by travel stocks after the U.K. placed a quarantine on travelers from Spain as the number of COVID-19 cases continue to surge. The pan-European STOXX index lost 0.5% at 0718 GMT. Meanwhile, ...
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