The European economy is shrinking, but the outlook is improving. The European Commission has improved its outlook for the eurozone economy It expects a drop in GDP of 7.8% in 2020, roughly one point lower than the 8.7% drop estimated a few months ago.
The European Commission is also improving its forecast for the European Union as a whole, which will contract 7.4% this year, which is a nine-tenths improvement over the calculations made in July.
Paolo Gentiloni, the commissioner of the economy, announced that the third-quarter data was “better than expected”, but warned that they will be affected by the increase in Covid-19 infections in recent weeks, which will lead to a recovery. “Stop in the short term,” he emphasized in collected remarks Europa Press.
The development of the latest data is due to better estimates in the major Eurozone economies. For example, German GDP will fall by 5.6% this year, a figure of 6.3% in the latest forecast. Similar changes are taking place in France now with a decrease of 9.4% compared to the previous 10.6%. And in Italy, with a current decrease of 9.9% compared to 11.2% previously.
Spain is the only power among the four powers of the common currency to suffer a downward adjustment in Brussels forecasts: From a 10.9% drop in July to a 12.4% crash. It will be the only country experiencing a contraction of more than 10% and will suffer the largest decline in the entire Eurozone.