This year, all 27 countries of the euro area have to survive a tough challenge. The coronavirus-driven crisis has wrecked the plans of the EU authorities to bolster economic growth. So, 2020 is sure to be one of the dismal years on record since the EU was founded in 1993. According to the baseline scenario, the ECB reckons that the euro area’s GDP could tumble by 8.7% in 2020. A slump will be followed by a 5.2% increase in 2021. Then, the EU economy is projected to slowdown a pace of growth to 3.3% in 2022.
Breaking down the GDP forecast by quarters, the eurozone’s economy is expected to deepen a slump to -13% in Q2 2020 following a 3.8% decrease in Q1. ECB experts say that restrictive measures imposed in most EU countries in March account for such a severe downturn. Even though most countries have been cautiously lifting lockdown measures, it is too early to speak about a revival. Besides, the ECB estimates consumer inflation at 0.3% for the euro bloc in 2020. Later, inflation could accelerate to 0.8% in 2021 and 1.3% in 2022.