The European Union released its first official estimates on the extent of the coronavirus pandemic's economic damage on Wednesday, predicting "a recession of historic proportions" for 2020 in the European Commission Spring economic forecast. The eurozone's economy, which includes 27 nations, is forecasted to contract by 7.5% this year, before growing about 6% in 2021. The growth rate assumes that all countries ease their pandemic lockdowns at a steady pace. For the 19 nations that use the euro as their currency, the E.U. charts a record decline of 7.75% for the rest of the year and growth of 6.25% for 2021.
"It is not quite clear that the E.U. has entered the deepest economic recession in its history," Paolo Gentiloni, the European Commissioner for Economy, stated to reporters in Brussels. When the virus entered the continent, "economic activity in the E.U. dropped by around one third practically overnight."
The eurozone is not the only large world economy that is starting to see the deep recession that the coronavirus pandemic is bringing. The United States' economy continues to report bleak economic data throughout March and April that is showing signs that recovery will not be "V" shaped as many economists hoped for. The U.S. unemployment rate for April had risen to its highest level since the Great Depression in a matter of weeks, with the number expected to grow as employers continue to cut private payrolls and stay-at-home orders continue. Even with many states beginning to ease social restrictions, the coronavirus will continue to threaten the economy until a proven treatment or cure is found.
Total Global Cases: Over 3.8 Million
Total Deaths: Over 280,000
Total Recovered: Over 1.3 Million
Health Check-Up
The World Health Organization warned global leaders on Wednesday to be mindful when easing social distancing, for the risk of returning to lockdowns "remains very real" as health officials warn of a potential second wave.
The agency noted in its coronavirus press conference that while cases have declined in Western Europe, new cases around the world continue to be reported to the W.H.O. at a rate that averages 80,000 per day.
"This virus likes to find opportunities to spread and if these lockdown measures are lifted too quickly, the virus can take off," said Dr. Maria Van Kerkhove, W.H.O.'s lead for the coronavirus response.
For a look into Western Europe, Chancellor of Germany Angela Merkel stated at a news conference on Wednesday that Germany's new case numbers have lowered compared to two weeks ago. "We have reached the goal of slowing the spread of the virus, of protecting our health care system from being overwhelmed." Now the largest economy in the eurozone is preparing to reopen more aspects of its economy and society, albeit cautiously.
The New York Times noted that Germany's response to the coronavirus "demonstrated that a combination of cautious, science-led political leadership and a regimen of widespread testing, tracing and social distancing could allow for a controlled reopening."
However, there is still so much to learn about the virus before any countries actions can be judged. On Wednesday, New York Governor Andrew Cuomo stated that the state's new hospitalization's are of people who were mostly staying at home.
"We thought maybe they were taking public transportation, and we've taken special precautions on public transportations. But actually no, because these people were literally at home," Cuomo stated during his coronavirus press conference in Albany.
