The European Commission forecast that Luxembourg’s economy would decline by 6.25% this year, due to the covid-19 outbreak, and grow by 5.5% in 2021. Pictured: Paolo Gentiloni, European economy minister, speaks during a press conference, 7 July 2020. Photo: European Commission/Xavier Lejeune
In its Summer Forecast published on 7 July, the European Commission downgraded its own projection from earlier in the year, making for an even grimmer outlook for the EU economy in 2020.
The -7.4 percent contraction originally expected has been reassessed to -8.3 percent.
“The EU economy will experience a deep recession this year due to the coronavirus pandemic, despite the swift and comprehensive policy response at both EU and national levels. Because the lifting of lockdown measures is proceeding at a more gradual pace than assumed in our Spring Forecast, the impact on economic activity in 2020 will be more significant than anticipated.”