- EXPRESS - Jan 13, 2021 -
Ten years after the financial crisis, Europe’s economy achieved a recovery, but not a revival. Low inflation, low interest rates and low growth were the new normal across the continent. Then, the coronavirus pandemic hit, causing incredible damage to the economies of numerous countries.
Covid-19 plunged the eurozone into its deepest recession for a generation and the economy is expected to shrink again at the start of this year.
Analysts at banks including JPMorgan Chase & Co. and UBS Group AG are downgrading forecasts to account for renewed lockdowns and the prospect that the new coronavirus variant ravaging the UK will do the same on the continent.
Add vaccination delays to trade disruptions because of Brexit, and the scene is set for a second quarter of falling gross domestic product.
That would echo the downturn at the start of 2020, even if less severe, and increase pressure on indebted governments and the European Central Bank, which meets to set policy next week, to provide more financial support.