Eurozone suffers biggest economic contraction


Eurozone suffers biggest economic contraction as countries across bloc are hammered by coronsvirus pandemic

The eurozone suffered its biggest ever economic contraction over the spring as countries across the bloc were hammered by the Covid-19 pandemic. 

Output among the 19 single currency nations tumbled 12.1 per cent in the second quarter, in a further sign of the devastation caused by the virus and subsequent lockdown. 

Solidarity: Output among the single currency nations tumbled 12.1 per cent in the second quarter

Solidarity: Output among the single currency nations tumbled 12.1 per cent in the second quarter

Spain was the worst hit, with the economy shrinking by 18.5 per cent. Output was down 14.1 per cent in Portugal, 13.8 per cent in France and 12.4 per cent in Italy. 

The figures came just a day after Germany reported a record 10.1 per cent slump between April and June and the US said output was down 9.5 per cent on a quarterly basis. 

On an annualised basis, the American economy contracted by 32.9 per cent, the steepest decline since records began in 1947. 

Jan Lambregts, global head of financial markets research at Rabobank, said: ‘What we need is a vaccine or significant breakthroughs in medicines to decisively reopen our economies and restore business and consumer confidence.’

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