EU Economy May Shrink by 16% in 2020 in Case of 2nd Wave of COVID-19 (European Commission)

27 mai 2020 Printable Version

Brussels - EU economy may shrink 16 percent this year if it is hit by a second wave of the coronavirus epidemic with subsequent re-introduction of related restrictions, the European Commission said.

"Overall, the EU economy is expected to shrink by more than 7% in 2020. However, a worst-case scenario of a second wave and extended lockdown measures could lead anywhere up to a 16% drop in GDP this year," the commission said in its report "Europe's moment: Repair and Prepare for the Next Generation."

To restore the economy from the current crisis, the EU needs at least 1.5 trillion euros ($1.65 billion) of additional investments in 2021-2022, the report stresses.

"Putting a definitive figure on investment needs at this stage of the crisis is not an exact science. However, the needs assessment estimates that at least €1.5 trillion of additional public and private investment will be required in 2021 and 2022 to get Europe on the road to a sustainable recovery," according to the same source.