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George Ma
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Stocks
May 1 14:21

EU economy has entered a recession

Economy of the eurozone countries fell by 3.8% and by 3.5% for all EU states combined
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Data published by Eurostat shows that the European economy has entered a deep recession. In the first quarter, as a result of quarantine measures, the economy of the eurozone countries fell by 3.8% and by 3.5% for all EU countries combined.

This is the biggest fall since 1995. The economic decline caused by the coronavirus was more severe than the 2008 crisis, that happened after the collapse of Lehman Brothers bank.
Pandemic severely impacts EU economy given that quarantine measures in most European countries were introduced only in March, the last third of the first quarter. Italian, Spanish and French economies contracted by 4.5%, 5% and 5.8% respectively. Thus France broke the record of 1968, when its economy fell by 5.3% due to a general strike.
Italy will start gradually leaving quarantine early next week. But the European Central Bank takes into account a scenario in which the European economy will not be able to turn around during summer.