Eurozone economy marks record decline due to coronary

The full extent of the impact of Covid-19 on the eurozone economy has been rejected by figures showing that the unique European currency area has contracted to a record 12.1 per cent in the second quarter of 2020.

Amid growing fears that the default European recovery will be affected by a second wave of crisis, the European Union's statistical institute, Eurostat, proved the decline in activity caused by almost total impasses imposed by some countries in the spring.

The data found that contractions in the second quarter of the year when combined with a smaller decline in the first three months of the year had wiped out a decade and a half of enlargement, turning the eurozone economy into the middle level of 2000.

In Spain, where concerns about a second wave are sharper, there has been the biggest decline in production in the second quarter, registering a GDP drop of 18.5%.

The decline, unmatched even during its 1930s civil war, followed a 5.2% contraction in the first quarter, and means that the eurozone's fourth largest economy contracted to almost a quarter in the first half of 2020.

France dropped GDP by 13.8%, while the next largest economy, Italy has scored 12.4%, turning its economy to mid-90s levels.

Germany, which reported its growth figures on Thursday, was the least bad performer of the Eurozone “-fourth <x0-fourth” with a GDP contraction of 10.1% in the second quarter. The best performing countries in the eurozone were in Eastern Europe and the Baltic countries.

Eurostat said the eurozone economy overall was 15% lower than a year ago.

The record decline in April-June 2020 followed a 3.6% decline in the first three months of the year and zero growth in the last quarter of 2019.