Recession warning for euro zone and UK from S&P

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Standard & Poor’s (SP) announced that the possibility of workplaces to remain closed for 4 months is expected to cause a 10 percent drop in the euro area economy.

International credit rating agency Standard & Poor’s (S&P), euro zone and new type of British economy coronaviruses (Covid-19) predicted that it will shrink 2 percent this year due to the effect of the epidemic, and will recover at least 3 percent in 2021.

In the statement made by the credit rating agency, it was noted that the economic cost of the coronavirus epidemic increased rapidly for Europe.

In the statement that the euro zone and England are facing recession, “We expect the gross domestic product (GDP) to drop by about 2 percent this year due to the economic effects of the coronavirus epidemic, compared to the estimates we made in November 2019. This indicates that there will be a loss of 420 billion euros in 2020. At least 3 percent in 2021 We are waiting for a recovery “ evaluation was made.

Reminding that central banks and governments have implemented unprecedented fiscal policy packages to assist employees and companies, the statement emphasized that bold policy measures taken are important for preventing permanent losses in the economy.

In the statement that the risks are still downward, it was stated that the epidemic could take longer than expected and spread more.

The statement noted that the possibility of workplaces to remain closed for a period of 4 months is likely to cause a decline in the euro area economy by up to 10 percent.

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