EU Economy May Shrink By 16% In 2020 In Case Of 2nd Wave Of COVID-19 - EC

EU economy may shrink 16 percent this year if it is hit by a second wave of the coronavirus epidemic with subsequent re-introduction of related restrictions, the European Commission said

BRUSSELS (UrduPoint News / Sputnik - 27th May, 2020) EU economy may shrink 16 percent this year if it is hit by a second wave of the coronavirus epidemic with subsequent re-introduction of related restrictions, the European Commission said.

"Overall, the EU economy is expected to shrink by more than 7% in 2020. However, a worst-case scenario of a second wave and extended lockdown measures could lead anywhere up to a 16% drop in GDP this year," the commission said in its report "Europe's moment: Repair and Prepare for the Next Generation."

To restore the economy from the current crisis, the EU needs at least 1.5 trillion Euros ($1.65 billion) of additional investments in 2021-2022, the report says.

"Putting a definitive figure on investment needs at this stage of the crisis is not an exact science. However, the needs assessment estimates that at least ��1.5 trillion of additional public and private investment will be required in 2021 and 2022 to get Europe on the road to a sustainable recovery," the document says.

EU economy has been hit hard by the coronavirus pandemic and related restrictions. According to latest estimates of the European Commission published in early May, EU GDP will collapse by 7.4 percent this year, but will grow 6.1 percent in 2021.