Passengers wear protective face masks when boarding a metro train in Madrid, Spain.
Bloomberg | Bloomberg | Picture of Getty
The eurozone economy contracted by 12.1% in the second quarter of 2020 compared to the first three months of the year, according to preliminary data from the region̵7;s statistics department.
Friday’s reading is the lowest since recording began in 1995. The region’s largest economies shrank in double digits during this period due to harsh blocking measures caused by the coronavirus pandemic. German GDP (gross domestic product) decreased by 10.1%; Italy fell by 12.4%; France fell 13.8%; and Spain fell by 18.5%.
During the first quarter, the 19-member bloc, which shares the euro, experienced a 3.6% drop in GDP. The GDP rates of Spain, Italy and France decreased by more than 5% during this period.
The last reading examines economic activity between April and June, which coincides with a time when many European governments had severe shutdowns that slowly eased as the quarter progressed. While there is still much uncertainty, an increase in Covid-19 infections has been reported in some countries in recent weeks.
Now various governments have stated that they will not close the economy completely, as it was before. However, officials say they are ready to introduce additional and stricter rules on meetings and other rules of social distance to avoid a big second wave.
The United States reported the biggest drop in quarterly growth that ever occurred on Thursday, when second-quarter GDP fell 32.9 percent year-on-year.
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