- Eurozone GDP fell 12.1% in the second quarter, the largest decline in history.
- This is significantly higher than the 3.6% decline in Eurozone GDP in the first quarter
- Spain was the worst country, down 18.5% from the previous quarter.
- Last week, the European Union signed a historic agreement on a $ 860 billion reconstruction fund to rebuild the 27-nation bloc.
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Eurozone GDP fell 12.1% in the second quarter of the year, the biggest drop in a quarter of history, as there is a real impact of the coronavirus on the continent’s economy.
GDP fell 12.1% in the eurozone and 11.9% in the wider EU in the second quarter, Eurostat data showed on Friday.
This is significantly higher than in the first quarter, when GDP in the Eurozone fell by 3.6% and in the EU – by 3.2%.
The level of GDP was also 15% lower in the euro area compared to the second quarter of 2019 and 14.4% lower in the EU.
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The countries that suffered the most were Spain, which fell by 18.5% in the second quarter compared to the previous quarter, and Portugal, which fell by 14.1%.
Lithuania recorded the smallest decline of 5.1% compared to the previous quarter.
Spain was one of the first countries to be hit hard by the coronavirus pandemic in Europe, and was one of the first economies to be shut down. In Spain, there was a more severe shutdown compared to other European counterparts, which means even lower economic activity.
Commenting on the latest figures, Las Akinsilar, head of trading on the INFINOX e-commerce platform, said: “Virus outbreaks are now a serious problem not only for the health care systems and economies of EU member states – they are also a threat to the integrity of the bloc.”
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“Despite all the odds, European leaders have agreed to a colossal € 750 billion bailout fund at this month’s marathon summit. pressure, “he added.
Last week, European Union leaders reached a landmark agreement on a $ 860 billion fund to rebuild a 27-member bloc.
The exchange of the euro for the dollar was not very responsive to the news and traded at 1.18 euros per dollar.
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