Euro area experiencing deep recession due to pandemic, says European Commission

The Eurozone economy is expected to contract by 8.7% this year.

The European Commission says the euro area is experiencing a 'deep recession' due to the Covid-19 pandemic.

In its summer economic forecast, the European Commission's projecting the European area's economy to contract by 8.7% in 2020 and grow by 6.1% in 2021.

While the EU economy as a whole will contract by 8.3% this year, but grow by 5.8% next year.

The latest predictions are roughly one percentage point worse than the 7.7% and 7.4% projections from the spring forecast in April. 

The commission also says next years growth will be slightly less robust than previously anticipated.