Eurozone Braces for Recession Amidst Covid Third Wave

Eurozone Braces for Recession Amidst Covid Third Wave

The third wave of Covid-19 disrupted the Eurozone's financial recovery - Image Source: Pixabay

THE EUROZONE is bracing itself for a double-dip recession as the third wave of Covid causes member states to remain locked down.

Economists have warned that the economic recovery enjoyed by the Eurozone during 2020’s last financial quarter is set to be reversed by the third wave of Covid-19 – leading experts to anticipate a double-dip recession.

A double-dip recession defines a recession that is followed by a short-term recovery, only to fall back into further financial woes. In the third quarter of 2020, the Eurozone’s GDP rose by 12.4% – marking a full recovery from its 11.4% plummet in the year’s second quarter.

However, since the onset of Covid’s deadly third wave the bloc’s economic value has again dropped by 0.7% and expected to continue a downward devaluation as lockdown measures seem set to stay for the next few months.

A recession refers to two months or more of consecutive negative growth, which experts warn lies in store for the Eurozone. However, the bloc is not the only economic system in the continent facing dire financial straits.

The UK is expected to experience a painful 10% contraction in its economy – the largest of any G7 nation. The Exchequer is set to release its GDP figures soon, which analysts believe will spell as bleak a forecast for the British economy in the short term as the Eurozone is bracing itself for.

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Oisin Sweeney

Oisin is an Irish writer based in Seville, the sunny capital of Andalucia. After starting his working life as a bookseller, he moved into journalism and cut his teeth as a reporter at one of Ireland's biggest news websites. Since joining Euro Weekly News in November, he has enjoyed covering the latest stories from Seville, Spain and further afield - with special interests in crime, cybersecurity, and European politics. Anyone who can pronounce his name first try gets a free cerveza...