Europe’s GDP Losses Due to COVID Pandemic Will Amount to €3T – IMF

As a result of the impact of coronavirus infection, the slowdown in EU’s economy is estimated to be 7% in 2020, with a EUR 3 trillion GDP deficit and an incomplete and restricted recovery predicted.

This was announced on Wednesday by Alfred Kammer, Head of the International Monetary Fund (IMF) European Department, who delivered a regional report on the economic situation of EU.

The « unprecedented policy response » to the current anti-coronavirus pandemic, he said, helped prevent « more devastating results. » Thus, by the actions of EU officials, about 54 million jobs have been rescued.

Furthermore, according to Kammer, the policies « averted a much deeper crisis and serious economic scars. » He stressed that without a rapid response, EU’s GDP would have been 3-4 percentage points lower this year.

« In 2020, EU’s GDP is expected to decrease by 7 percent. The rebound from this recession will be incomplete and limited. While actual GDP is estimated to rise by 4.7 percent in 2021, it will still be 6.3 percent lower than our pre-pandemic projections. This means a loss of nearly EUR 3 trillion in GDP. Most of these losses will not be recovered in the medium term, » Kammer said.


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