EU predicts recession of “historic proportions” due to coronavirus

The European Commission forecasts that the bloc’s economy will shrink by 7.5 percent this year.

The European Union predicts that the bloc’s economy will plunge into a “recession of historic proportions” this year due to the effects of the coronavirus pandemic.

According to the first official forecast published on Wednesday, the EU economy will shrink by 7.5 percent in 2020 and recover by about 6 percent in 2021.

“It is now clear that the EU has entered the deepest economic recession in its history,” European economic Commissioner Paolo Gentiloni said during a press conference in Brussels. According to him, due to the coronavirus, economic activity in the EU “decreased by about a third almost overnight.”

The coronavirus has hit almost all sectors of the economy, consumer spending, and investment, causing a sharp jump in the unemployment rate. According to EU forecasts, this year, unemployment will increase from 6.7 percent to 9, and in 2021 it will fall to 8 percent.

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