European Commission: Euro area GDP seen falling by 7.7% in 2020

Dhwani Mehta FXStreet

The European Commission is out with its latest economic forecasts on the euro area, with the key highlights found below.

Euro area GDP is seen at -7.7%, 2021 Euro area GDP seen at +6.3%.

2020 Germany GDP seen at -6.5%, 2021 Germany GDP seen at +5.9%.

2020 France GDP seen at -8.2%, 2021 France GDP seen at +7.4%.

2020 Italy GDP seen at -9.5%, 2021 Italy GDP seen at +6.5%.

Italy's debt was set to spike to 158.9% of GDP this year before marginally dropping in 2021, a massive jump from the already huge ratio of 134.8% recorded in 2019, and the highest level since World War II.

Market reaction

The economic projections failed to move the euro, as EUR/USD kept its range near two-week lows of 1.0792, down 0.40% on a daily basis.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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