Europe is plagued by economic disaster due to the outbreak of Corona

Europe, still divided, is facing an economic catastrophe due to a new outbreak of the Corona virus, amid a massive contraction of the eurozone economies due to the effects of the pandemic.

According to the European Central Bank, there could be a contraction of between 5% and 12% of GDP in the euro area this year.

The bank president, Christine Lagarde, expected - during a hypothetical press conference - that this sharp contraction will be followed by a recovery if the stone measures are gradually lifted, but "its speed and scope are shrouded in a great deal of doubt."

On Thursday, a series of figures came to confirm the bleak outlook for the continent's aging economy.

France (the second largest economy in the continent) announced that the gross domestic product decreased by 5.8% in the first quarter of this year, according to estimates published by the French National Institute for Statistics and Economic Studies today.

This is the most severe economic downturn since the Second World War, in light of the closure of shops due to the general isolation imposed since the middle of last March and the necessity of consumers' homes.

Germany said the number of unemployed rose by 13.2% in April, the largest increase in a month since 1991, the Ministry of Labor announced today.

While monthly retail sales fell in March, the fastest pace in 13 years, amid public isolation measures to limit the spread of the Corona virus, which is pressing the largest economy in Europe.

In Spain, the National Institute of Statistics announced today that the economy contracted in the first quarter of this year by 4.1% compared to the same period last year due to the Corona crisis.

The institute said - based on preliminary estimates - that the fourth largest economy in the euro area contracted in the first quarter by 5.2% compared to the last quarter of 2019, due to harsh measures taken to confront the pandemic.

In Italy, where the largest number of deaths (about 28,000) occurred after the United States, Prime Minister Giuseppe Conte announced Thursday that the recession may exceed 10% this year.

Fitch expects Italian GDP to shrink 8% in 2020.

At the level of the euro area, activity decreased by 3.8% in the first quarter of the year, its highest decline since the establishment of one currency in 1999, according to the European Bureau of Statistics, "Eurostat".