A painful recession threatens the euro area and contraction by 10%

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Standard & Poor’s: Corona pushes euro zone recession by 2%

Source: London – Reuters

S&P Global estimates Thursday that the Corona virus outbreak will cause a 2% recession in the euro zone this year, warning that deflation could reach 10% if the current isolation in the 19-nation region extends for four months.

In a new report, the credit rating agency said that in light of the economic costs “which are escalating rapidly with the increase in measures aimed at containing the virus, the economies of the euro area and Britain are currently facing a 2% contraction for 2020”.

“For example, our estimates suggest that a four-month isolation could cut euro zone GDP by up to 10% this year,” Standard & Poor’s said.