- Euro area GDP declined by 12.1% in the second quarter, the largest decline in history.
- This is significantly more than the 3.6% decline in euro area GDP in the first quarter
- Spain was hardest hit, down 18.5% from the previous quarter.
- Last week, the European Union signed a historic agreement with a $ 860 billion reconstruction fund to rebuild a 27-member bloc.
- You can find more stories on the Business Insider homepage.
Eurozone GDP declined by 12.1% in the second quarter, the largest decline in history in a single quarter, when the real impact of the coronavirus on the continent’s economy appears.
GDP in the euro area fell by 12.1% in the second quarter and by 11.9% in the wider EU, according to Eurostat data on Friday.
This is significantly higher than in Q1, when GDP fell by 3.6% in the euro area and by 3.2% in the EU.
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GDP levels in the euro area were also 15% lower than in the second quarter of 2019 and in the EU by 14.4%.
The countries most affected were Spain, which fell by 18.5% quarter on quarter, compared with the previous quarter, and Portugal, which fell by 14.1%.
Lithuania recorded the lowest decline of 5.1% compared to the previous quarter.
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Spain was one of the countries to be severely affected by the coronavirus pandemic in Europe for the first time and was one of the first economies to be imprisoned. Spain had a stricter blockade compared to other European partners, which means even lower economic activity.
Commenting on the latest figures, Las Akincilar, Head of Online Trading at INFINOX, said: “The virus outbreak is now a major challenge not only for the healthcare systems and economies of the EU Member States – it is also a threat to the integrity of the bloc. ‘ “
“Despite all chances, European leaders agreed at a marathon summit in March on a huge rescue fund of 750 billion euros. This agreement has given Eurowatchers hope, but when the unemployment rate rises sharply and growth is firmly entrenched, the single currency comes under sustainable pressure, “he added.
Last week, European Union leaders reached a historic agreement on a $ 860 billion recovery fund to rebuild a 27-member bloc.
The exchange of the euro against the dollar did not react much to the news and traded at EUR 1.18 per dollar.