EU Economy Suffers 11.7% GDP Decline, While Labour Market Sheds 5.5 Million Jobs

The impact of the coronavirus pandemic on economies is becoming more evident, as many countries across Europe had to impose strict lockdowns and mitigation measures in order to curb the spread of the virus. In fact, the impact has been so detrimental, that the labour market in the EU has contracted by 2.6% in the second quarter – the worst ever compared to records dating back to 1995.

According to data released by Eurostat on Friday, employment in the EU fell by 5.5 million, while GDP contracted by a staggering 11.7% in the second quarter. The latest data points to the ongoing crisis in Europe’s job market, as many companies had no choice but to lay off employees, who in turn had no option but to turn to government-backed furlough schemes.

However, there are some signs that point to a slight recovery for Europe’s economy. Eurostat data shows that eurozone exports increased by nearly a third in May and June, but are still 10% below pre-pandemic levels of the year prior. Nonetheless, purchasing manager indices suggest that the month of July has seen a significant recovery in both manufacturing and consumer industries across countries in Europe.

Information for this briefing was found via Eurostat. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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