Even before the actual coronavirus outbreak was fully controlled, many countries in Europe are now facing a second wave of infections.
The previously projected growth forecasts remain doubtful as a double dip recession seems more likely.
Rafael Domenech, head of economic analysis of BBVA Research, shared an article on how a second wave of coronavirus infections and restrictions in Europe is threatening to cause a double dip recession in the region.
Several countries in Europe including Germany, France, UK, Italy, Spain, and the Netherlands have announced measures to control the rise in coronavirus cases.
Experts predict that the second wave will result in negative growth in the fourth quarter of 2020.
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The European Central Bank’s earlier prediction that the region will grow by more than 3% now seems unlikely.
It also casts doubt on the forecast of recovery in the euro zone to pre-pandemic levels by 2022.
Additional monetary easing and fiscal aid may be needed to address the damage caused by the second wave, the article noted.