The euro-area economy plunged into a record contraction, an outcome that will only add more urgency to controversial demands for joint government fiscal support, Bloomberg reports.
Following the Bloomberg article, ‘’output in the 19-country region shrank 3.8%, reflecting shutdowns to contain the coronavirus that have pushed businesses close to collapse, sent unemployment surging and forced governments to unleash billions of euros in emergency stimulus.’’
It says Italy, saw GDP fall 4.7% in the quarter, while France and Spain reported contractions of more than 5%.
Following the article, the health crisis has morphed into an economic catastrophe, those countries have called for a solution that would see the burden of fiscal support shared through joint European Union debt sales.
When it comes to the worldâs worst-performing stocks this year, you canât blame all the bad returns on the Covid-19 pandemic https://t.co/FM1lorwd6W pic.twitter.com/dzvY6F6v3H
— Bloomberg (@business) April 30, 2020
‘’Governments such as Germany and the Netherlands have rejected that over fears they’ll end up with much of the bill,’’ Bloomberg reports.
It adds that on Thursday, the European Central Bank acted again, announcing long-term loans for banks.
Inflation figures in the euro zone slowed to just 0.4% in April, the weakest since 2016.
‘’That was largely driven by the collapse in oil prices, with energy costs plunging almost 10%,’’ Bloomberg says.
Vakho Revazishvili
News Author