You are using an older browser version. Please use a supported version for the best MSN experience.

S&P Global: Euro zone faces 2% recession, 10% if lockdown lasts

Reuters logo Reuters 3/26/2020
LONDON, UNITED KINGDOM - MARCH 10: People wear medical masks as a precaution against coronavirus in central London, United Kingdom on March 10, 2020. Today the total number of coronavirus cases has reached 373 with the death toll of 6 in the UK . (Photo by Ilyas Tayfun Salci/Anadolu Agency via Getty Images) © Ilyas Tayfun Salci/Anadolu Agency via Getty Images LONDON, UNITED KINGDOM - MARCH 10: People wear medical masks as a precaution against coronavirus in central London, United Kingdom on March 10, 2020. Today the total number of coronavirus cases has reached 373 with the death toll of 6 in the UK . (Photo by Ilyas Tayfun Salci/Anadolu Agency via Getty Images)

LONDON (Reuters) - The coronavirus outbreak will see a 2% recession in the euro zone this year, S&P Global estimated on Thursday, warning that the contraction could be as much as 10% if the current lockdowns in the 19-country region last as long as four months.

With the economic costs "mounting quickly as measures to contain the virus increase... the eurozone and U.K. economies are now facing a recession of -2% for 2020," the ratings agency said in a new report.

Risks are still to the downside, however. "For example, we estimate a lockdown of four months could lower eurozone GDP by up to 10% this year," S&P said.

(Reporting by Marc Jones; Editing by Dhara Ranasinghe)

AdChoices
AdChoices
AdChoices

View the full site

image beaconimage beaconimage beacon