Eurozone Economy Sees Biggest Contraction Ever
April 30, 2020
The 19 countries that make up the eurozone saw the most severe economic contraction in the economic alliance’s history. GDP shrank by 14.4% in the first quarter, far surpassing the slowdown in America, likely because the economic lockdown began earlier and the virus was more widespread. The previous worst quarter was a 12% decline in Q1 2009, as Europe grappled with the great financial crisis.
It appears that there is a split in the eurozone, where northern countries have suffered a more moderate slowdown. For example, Austria reported a 9.6% percent contraction, as opposed to Spain’s staggering 19.2% drop.
Economists anticipate that the second quarter could see an even more severe slowdown.