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European Commission warns of slump in EU economy in 2020
European Commission warns of slump in EU economy in 2020

The 2020 leap year will be memorable as apocalyptic for the global economy. Hardly any country in the world has been unaffected by the coronavirus-driven crisis. The whole global economy has sunk into a severe protracted recession. Notably, advanced countries are more vulnerable to the aftermath of the pandemic. The EU comprising 27 countries has suffered the most by the novel coronavirus in terms of the death toll and appalling infection rates. According to the most optimistic forecasts by the European Commission, the EU economy is expected to shrink over 7% this year. The downturn is accompanied by soaring unemployment. Stimulus packages introduced by the ECB and EU governments require humongous budget spending that is sure to swell the public debt. At present, the EU authorities managed to stamp out the coronavirus spread through strict lockdown measures. Nevertheless, experts do not rule out the second wave of COVID-19 later in the year. If the virus is actually contained, this is the best-case scenario. So, there is a slim chance that the EU countries will reveal green shoots of recovery next year. Meanwhile, the fallout from the pandemic is spilling all over the world causing havoc in the global economy and massive job losses. Apart from the EU, the US economy is also facing a tough challenge. Over 20 million Americans filed for unemployment benefits during the shutdown in March – April.             

Published: 2020-05-18 12:57:21 UTC
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