The euro zone shaken

La zone euro ébranlée

Photo: Daniel Roland Agence France-Presse
The president of the european central bank, Christine Lagarde, said it was ready to a strengthening of the emergency program of the institution.

The pandemic has severely shaken the economy of the euro area. Falls records, the GDP increased in the first quarter and a scenario that is more dark waiting for the second.

The figure has fallen. According to the first Eurostat estimate, the euro zone GDP plunged 3.8% in the first quarter, from 14.4 % at an annualized pace not seen since the creation of the single currency in 1999.

This fall is explained by the containment measures of which the implementation started at the end of February, means that the bulk of the damage occurred in less than one month. The worst is, therefore, expected for the three-month period from April to June.

The dashboard on the evolution of the coronavirus in Quebec, in Canada and in the world

The fall

All the countries of the area have contributed to the fall. France saw its GDP decrease of 5.8 %, Spain 5.2% and Italy 4.7 %. China has experienced an annualized decline of 33.8% of its real GDP in the first quarter and the United States, 4.8 %, recalls Francis Généreux senior economist at Desjardins group.

A divergence which ” primarily reflects the beginning, the scope and duration of sanitary measures and containment “, he explains.

In response, the president of the european central bank, Christine Lagarde, said it was ready to a strengthening of the emergency program of the institution, or even to extend beyond 2020.

“The euro area is facing an economic contraction of a magnitude and speed never before seen in peace time. “The growth scenarios produced by the ECB suggest that GDP could decline by 5 % to 12 % this year.

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