Eurostat Shows EU Economy is on the Verge of Recession

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The eurozone economy posted record historical drop in 1Q due to measures introduced in March to curb the coronavirus epidemic, data showed on Friday.

Euro zone GDP in the first quarter of 2020 decreased by 3.8% compared with the previous quarter and by 3.2% in annual terms, according to a preliminary estimate published on Friday by Eurostat.Economists surveyed by Reuters expected GDP to decline by 3.8% on a quarterly basis and by 3.3% on an annualized basis.

Eurostat reported that the decline in quarterly terms was the highest on record. In annual terms, the decline was the biggest since the third quarter of 2009, when Eurozone GDP fell by 4.5%.

The sharpest rates of economic contraction were observed in France – by 5.8% on a quarterly basis, in Slovakia – by 5.4% and in Spain – by 5.2%.

Italy’s GDP fell 4.7% and considering a 0.1% decline in the previous quarter, the country officially entered recession.

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