EU predicts region will contract 7.5% this year in worst economic shock since 1930s

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EU predicts region will contract 7.5% this year in worst economic shock since 1930s
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In February, the European Commission estimated a 1.4% rise in GDP for the EU this year.

European governments are working on plans to lift confinement measures after several weeks in lockdown.

The executive arm of the EU has released its latest economic forecasts — the first estimates since European countries introduced lockdown measures to stop the spread of the virus.

However, the reopening of economies is happening gradually, meaning that their overall business activity will be impacted for months to come. "Both the depth of the recession and the strength of recovery will be uneven … Such divergence poses a threat to the single market and the euro area," he said, calling on European governments to take decisive action.

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