According to a European Commission document seen by EURACTIV on Tuesday, the Commission expected the economic slowdown induced by the coronavirus pandemic is likely to be deeper than the 2009 Great Recession.
The internal document dated March 30 doesn’t show the Commission’s estimate as to how much the European economy will contract due to the virus hit.
The document read: “Taking into account the extent of the supply-side disruptions in the productive capacity of countries and in global value chains (including intra-EU and extra-EU), we can reasonably expect this crisis to be deeper than the Great Recession in 2009.”
“The EU executive noted that the main economic impact has moved from the indirect effects of disruption in international supply chains, when the crisis was focused in China, to the suspension of non-essential economic activities in countries across the world, especially in Europe.”
EUR/USD continues to consolidate it rebound from 1.0991 lows, as it trades near 1.1020 region amid broad US dollar strength and ahead of the European open.