The coronavirus pandemic has plunged the Eurozone economies into the deepest recession
on record, with Spain suffering the hardest blow.
Eurozone economies output fell 12.5% collectively over the first half of 2020. The
contraction in economic output is the biggest in 25 years of economic history, whilst Spain,
an economy which relies heavily on the tourism sector, saw a contraction of 22% over the
first 6 months of 2020.
These figures do not bode well for a shared currency area which has experienced its fair
share of woes throughout the past decades. Furthermore, worries over the German economy as well as an election in 2021, may mean that the economic powerhouse of the Eurozone will be less than willing to shoulder the burden of economic recession by feeding its fellow Euro currency countries with cash as they have doneo in the past.
José Ignacio Conde Ruiz, a professor of economics at Madrid’s Complutense University described the fall in output as:
“The kind of drop one would see in a war.”
The only sector of the Eurozone which has seen growth is agriculture.