Europe Sees Largest Economic Contraction on Record
August 3, 2020
Europe’s fight against the spread of coronavirus has weighed heavily on the region’s economy, which saw a massive contraction even more severe than America’s. The eurozone’s GDP fell by a staggering 40.3% on an annual basis, as compared to the 32.9% GDP contraction seen in the U.S., making it the largest decline since region-wide records started being collected in 1995.
The more severe shutdown is attributed to the massive stimulus on the part of the U.S. government. Central banks and governments throughout Europe have also enacted fiscal and monetary stimulus, but not at the rate the U.S. has. Though recent data suggests that, despite the more severe initial shutdown, parts of Europe have seen a stronger rebound than America, in part because of the virus’s surge in parts of the country. Though recent spikes in France and Spain have many wondering if Europe is beginning to see the early signs of a building second wave of the virus.