Eurozone GDP Shows Record 12.1% Slump in Q2 2020, Eurostat Reports

US economy has worst-ever quarter with epic 32.9% dive in 2nd quater GDP

France and Spain both reported precipitous and worsening contractions Friday for their coronavirus-battered economies, with the Spanish economy shrinking by 18.5% and the French economy retreating by almost 14% in the second quarter when both countries were in lockdown.

Spain, however, recorded an 18.5 percent plunge in second-quarter GDP, reflecting one of the most stringent COVID-19 lockdowns in Europe which battered its key tourism industry. European Union leaders have agreed on a 750 billion-euro recovery fund backed by common borrowing to support the recovery from 2021. National governments have stepped in with loans to keep businesses afloat and wage support programs that pay workers' salaries while they are furloughed.

Federal Reserve Chairman Jerome Powell on Wednesday acknowledged the slowdown in economic activity and announced that the USA central bank is keeping interest rates near zero and will continue pumping money into the struggling economy. Excluding volatile food and energy prices, a key measure watched by the European Central Bank, inflation rose by 1.3% from 1.1% in June, Eurostat's flash estimates showed. But many job losses will wind up being permanent despite the stimulus.

"All the growth in GDP seen in the 2010-2019 decade has been wiped out in five months", said Marc Ostwald, chief economist at ADM Investor Services International.

In another hopeful sign, consumer spending - the traditional engine of the French economy - shot back above its pre-lockdown level in June, INSEE said. Cases have been rising again in several countries as people go on vacations and Britain slapped a 14-day quarantine on travellers returning from Spain.

The Spanish contraction was by far the sharpest slump since the country´s national statistics agency began collecting data. It was the largest drop on record.

The plunge in quarter-on-quarter gross domestic product (GDP) took Italy - the eurozone's third-largest economy - into recession as it had shrunk by 5.4 per cent in the first quarter.

Italy's official forecast is for a full-year GDP contraction of 8% this year, although Economy Minister Roberto Gualtieri has said this will probably have to be revised lower.



Latest news

James Murdoch Resigns from News Corp’s Board
Murdoch declined to comment further on Friday about the reasons for his departure, saying the letter 'speaks for itself '". The News Corp board, following the resignation will now be reduced to 10 seats from 11 as per the company's filing .

Herman Cain, Co-Chair of Black Voices for Trump, Dies of COVID-19
Although he was basically pretty healthy in recent years, he was still in a high-risk group because of his history with cancer". Former Cain aide Ellen Carmichael, who had served as the communications director for Cain's campaign, tweeted her condolences.

Greek Australian among the eight new deaths recorded in Victoria on Friday
Victoria Premier Daniel Andrews said masks or similar face coverings will become compulsory across the state starting late Sunday. The man is a direct contact of one of three women returning from Melbourne who allegedly lied on their border passes.

Animal Crossing New Horizons - How to Get King Tut Mask
You can use backed up save data with the island backup restoration service if your Nintendo Switch system is lost or broken. However, there's also some big changes behind the scenes, with Nintendo enabling a new save and island backup service.

Red Bull lifted by encouraging Friday form at F1 British GP
Mercedes have won all three races so far this year. "I think we've definitely made a step", he added. The balance is not as good as I'd like.

Other news