- Euro area GDP contracted 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 the hardest hit, down 18.5% from the previous quarter.
- The European Union reached a historic agreement last week on a $ 860 billion recovery fund to rebuild the 27-member bloc.
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In the second quarter, euro area GDP contracted by 12.1%, the largest drop in history in a single quarter as the real impact of the coronavirus on the continent’s economy becomes clear.
In the second quarter of the year, GDP fell by 12.1% in the euro area and by 11.9% in the EU as a whole, Eurostat data showed on Friday.
This is significantly more than the contraction in the first quarter, where GDP fell by 3.6% in the euro area and by 3.2% in the EU.
The level of GDP in the euro area was also 15% lower than in 2019. In the second quarter, and 14.4% lower in the EU.
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Spain suffered the most, declining by 18.5% quarter-on-quarter and Portugal by 14.1%.
Lithuania recorded the smallest decline of 5.1% compared to the previous quarter.
Spain was one of the countries in Europe to be hit hard by the coronavirus pandemic for the first time and was one of the first economies to face closure. Spain has been more severely closed than other European countries, which means even less economic activity.
Commenting on the latest figures, Las Akincilar, head of the INFINOX online trading platform, said: “The virus outbreak is now a major challenge not only for healthcare systems and the economies of EU Member States, but also for the integrity of the bloc.”
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“Despite all the chances, European leaders agreed at this month’s marathon summit on a huge 750 billion in pressure,” he added.
European Union leaders reached a historic agreement last week on a $ 860 billion recovery fund to rebuild the 27-member bloc.
The euro-dollar exchange rate did not react much to the news and traded at 1.18 euros per dollar.
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