The European Union’s economy will experience a deep recession this year (2020) due to the COVID-19 pandemic. The recession will take place despite timely response at European Union and local level.
The lifting of lockdown measures has happened at a more gradual pace than what was originally assumed back when the Spring Forecast was presented and this in return, has impacted economic activity throughout the Union significantly.
The Summer 2020 Economic Forecast projects that the euro area economy will contract by 8.7% in 2020 and grow by 6.1% in 2021. The European Union economy is forecast to contract by 8.3% in 2020 and grow by 5.8% in 2021. The contraction in 2020 is, therefore, projected to be significantly greater than the 7.7% projected for the euro area. Growth in 2021 will also be slightly less robust than projected in the spring.
Malta’s economy, following a period of continuous growth is expected to contract by 6% in 2020, whilst a 6.25% growth in Gross Domestic Product is expected in 2021.
For more information on the Summer 2020 Economic Forecast please click here.« Back