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EU forecasts a deep European 2020 recession

July 22, 2020

The European Commission recently lowered its outlook for the EU economy in 2020 revising the -7.4% contraction to an -8.3% contraction.

The European Commission commented: “The EU economy will experience a deep recession this year due to the coronavirus pandemic, despite the swift and comprehensive policy response at both EU and national levels. Because the lifting of lockdown measures is proceeding at a more gradual pace than assumed in our Spring Forecast, the impact on economic activity in 2020 will be more significant than anticipated.”

Paolo Gentiloni, Commissioner for the Economy, said: “Coronavirus has now claimed the lives of more than half a million people worldwide, a number still rising by the day – in some parts of the world at an alarming rate. And this forecast shows the devastating economic effects of that pandemic. The policy response across Europe has helped to cushion the blow for our citizens, yet this remains a story of increasing divergence, inequality and insecurity. This is why it is so important to reach a swift agreement on the recovery plan proposed by the Commission – to inject both new confidence and new financing into our economies at this critical time.”

“For the office imaging sector this is likely to see new technology sales stall for the time being, and a swing towards reuse. In recent weeks several of our European based clients are reporting an uptake in the sale of reused printer technology and consumables. In fact, there is an emerging shortage of empty inkjet cartridges needed for remanufacturing,” commented David Connett, a Partner at Connett & Unland GbR.

The Summer 2020 Economic Forecast projects that the euro area economy will contract by 8.7% in 2020 and grow by 6.1% in 2021. The EU economy is forecast to contract by 8.3% in 2020 and grow by 5.8% in 2021.

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