The economy of the Euro area in April—June has recorded a record decline of GDP of the currency bloc dropped over the same period last year by 15% in the whole European Union — by 14.4%. Hardest hit Spain is the only country where, in annual terms, the economy has lost more than one fifth. In France, Italy and Germany, despite the different restrictions and duration of their application, quarterly decline in the second quarter were comparable.The European economy against the background of restrictive measures in the second quarter of 2020 showed a historical drop in GDP of EU countries according to Eurostat decreased in April—June from 14.4% compared to the same period last year, in the Euro area, the decline was more pronounced — 15% (in the first quarter, or minus 2.5% and minus 3.1% respectively). This decline was the strongest since the beginning of statistics, since 1995. In comparison with the first quarter of 2020, the EU economy declined by 11,9%, of Euro area GDP by 12.1%. The strongest quarterly decline was recorded in Spain (minus 18.5% — that was the worst figure since 1970), Portugal (minus 14.1 per cent), France (minus 13.8 per cent). In Italy it is 12.4%, in Germany — 10,1% (however, in the first quarter to the fourth minus 5.4% to minus 2%).While not all countries have published its estimate of GDP decline, but they already have all the major countries of the currency bloc — the most pronounced decline in annual terms, again in Spain (year — on-year to 22.1%), France 19%, Italy — 17.3% (the first quarter of minus 12.4 percent). Almost the entire second quarter Spain lived in a regime of restrictions due to pandemic COVID-19 — restrictive measures were introduced on 14 March and taken only on June 21. As a result, in April—June, household consumption in Spain decreased by 21.2%, investment — by 22.4%.In Italy, the national Institute of statistics (ISTAT), by publishing its assessment, said that the economy “has suffered an unprecedented decline, a fully explainable by the effects of the emergency health and of the measures taken” to contain the outbreak COVID-19. In this case, although experts expect a sharp acceleration of the economy in the third quarter, in July business activity indicators remain below pre-crisis levels. Previously, their scores were and Germany — the fall in GDP in the second quarter is estimated at 11.7% (year to year).We will remind, the Ministry of economy has estimated the downturn in Russia in the second quarter at 9.6%. The comparable figure for the United States — the country’s GDP in April—June this year declined by 32.9% year on year (that is, if the pace of the economy had been falling for years), but by the second quarter of last year, the decline was 9.5%.”The greater the depth of the recession, the higher the risk for further growth of the economy,” notice to ING Bank. Among the major European economies everywhere kV��Chelny decreased by 10-14%, except in Spain — taking into account the effect of local restrictions, the decline here could be longer, believe in the Bank. “Data show that the European economy was back to growth from the beginning of may, but it had to do simply with opening the stores and the removal of restrictions, heavy as part of the restoration activity begins now, when there are more noticeable effects of rising unemployment and bankruptcies”,— experts warn.Tatiana Edovina
