FX.co ★ Recession creeps up in EU countries

The second quarter of this year turned out to be disappointing for nineteen EU countries. According to Eurostat, the eurozone economy shrank by 12.1%. Such a rapid decline in GDP has never happened before in the entire history of the euro area. However, worrying signs have been looming on the horizon for a long time. In the first quarter, GDP shed 3.6%. Since then, the situation has not improved. On the contrary, it is getting even worse. The decrease in GDP for two consecutive quarters indicates the beginning of a recession.

In annual terms, the gross domestic product of the eurozone tumbled by 15%. At the same time, the analysts' preliminary forecasts were slightly better. In the worst-case scenario, they expected GDP to lose no more than 12% in the second quarter and 14.5% on a year-over-year basis.

In comparison with the first quarter, EU GDP plummeted by 11.9%, and in annual terms, by 14.5%. All twenty-seven EU countries have also slipped in a recession.

Spain, Portugal, and France are bearing the brunt, recording the worst GDP figures - 18.5%, 14.1%, and 13.8%, respectively. Lithuania was the least affected country, with a 5.1% drop in GDP.