Eurozone economy on track for double-dip recession amid coronavirus – Reuters poll

Amid the second wave of the coronavirus tightening its grip, the Eurozone economy is expected to its first double-dip recession in nearly a decade, the latest Reuters poll of economists showed on Tuesday.

Key findings

“The eurozone economy to shrink 2.5% this quarter after expanding a record 12.6% in Q3. That is a dramatic turnaround from expectations of 3.1% quarterly growth as recently as July, and compares with 2.1% predicted in last month’s poll.”

“With new lockdowns and widespread restrictions accompanying the second wave of infections, over 80% of respondents, or 44 of 55, said a double-dip recession was now underway.”

“The economy is forecast to grow 0.8% in the first quarter of next year, a touch lower than the 1.0% forecast last month.”

“It will shrink 7.4% this year, less than the -8.0% predicted in the October poll, but still by far the worst on record. The poll put 2021 growth at 5.0%, the weakest median expectation since a poll taken in May.”