China News Service, May 7 (Xinhua)-According to a report from the European Union, the European Union News Agency reported that the new crown epidemic severely affected the European economy. The European Commission issued a forecast report on the 5th, saying that the euro zone will experience a "historical economic recession" this year, and public debt and budget deficits will soar.
The report said that Greece, Italy, Spain and Portugal were the hardest hit by the epidemic, with gross domestic product (GDP) falling sharply, with Greece falling by 9.7%, Italy by 9.5% and Spain by 9.4%.
On May 5, local time, the northern town of San Fiorano, once classified as the "red zone" of the Italian epidemic, was gradually unblocked, and a public was shopping at a candy stand.
The European Commission predicts that the total budget deficit of the euro zone will increase to 8.5% of GDP this year and 0.6% in 2019, after which the total deficit will shrink to 3.5% in 2021. The size of the euro zone debt will rise to 102.7% of GDP this year, 86% in 2019, and is expected to drop to 98.8% in 2021.
EU Economic Commissioner Paul Gentioni said that Europe is experiencing an unprecedented economic shock since the Great Depression.
However, the European Commission predicts that in 2021, the European economy is expected to bottom out. Among them, the euro zone will resume growth at a rate of 6.3%. (Liang Manyu)