Contraction of Eurozone Economy | 01 Aug 2020

The Gross Domestic Product (GDP) of the Eurozone reduced by 12.1% in the April-June 2020 quarter, compared to the previous quarter.

The Eurozone consists of 19 members of European Union (EU), which uses the Euro as their official currency. 8 EU members (Bulgaria, Croatia, Czech Republic, Denmark, Hungary, Poland, Romania, and Sweden) do not use the euro.
- The 27-country European Union saw a decline of 11.9% in its economy for the same period.

This is the largest drop on record in the eurozone's economy, as Covid-19 lockdowns shut businesses and hampered consumer spending.
No country escaped the impact of the pandemic. Spain suffered the region’s heaviest drop at 18.5%.
European governments are countering the recession with massive stimulus measures. They have stepped in with loans to keep businesses continuing and wage support programmes that pay workers’ salaries.
The European Union leaders have agreed on a 750 billion euro recovery fund backed by common borrowing to support their economy from 2021.
The European Central Bank is pumping 1.35 trillion euro in newly printed money into the economy, a step which helps keep borrowing costs low.
- The European Central Bank is an official EU institution and the central bank of the Eurozone countries.