The Eurozone economy is likely to fall into recession because the new quarantines against the coronavirus. Experts are now predicting shrinkage for the first quarter of this year, after the downturn in the fourth quarter. Earlier, economists were counting on growth for this period.
According to forecasts by Bloomberg, the euro area economy is projected to shrink by 4.1 percent this quarter, while a plus of 1.3 percent was predicted earlier. For the fourth quarter of 2020, the decline should be 1.5 percent. There is a technical recession in two quarters with economic contraction in a row.
Thanks to the vaccinations against the coronavirus in Europe and the relaxation of lockdowns, growth of 4.8 percent and 3.1 perctnt in the third quarter can be achieved in the second quarter, economists believe.
The French Finance minister Bruno Le Maire said on Tuesday that it will be challenging for France to meet its 6 percent growth forecast this year. According to him, that depends on how quickly vaccines can be administered.
