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February 28, 2021
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Eurostat: in 2020 GDP Fell by 6.8% in Euro Area, by 6.4% in EU

Bad news from Eurostat: according to preliminary data, in 2020 GDP fell by 6.8% in the Euro area and by 6.4% in the EU. The data also measure the decline of the GDP for the fourth quarter and it shows a decline of 0.7% in the Euro area and a 0.5% in the EU.

The decline occurred following the governments’ decisions to take measures to combat COVID-19 pandemic. The only period of 2020 where the Euro economy registered an increase was the third quarter, when the European states relaxed the restrictions, but still, the 12.4% GDP growth in the Q3 for the Euro area and the 11.5% for the EU were only possible because of the drastic drop in Q2.

When comparing all the quarters to the similar ones from 2019 we can see the drastic drop:

Seasonally adjusted data from Eurostat for 2020
Eurostat seasonally adjusted data for growth rates of GDP up to 2020 Q4

The perspectives are good, though, as predictions show the EU economy could grow with more than 4% this year as compared to 2020. Still, there will take some more time than a year for the economy to recover to the level it had before pandemic.

Romanian Government also expects a 4.3% growth of GDP in 2021, a prediction on which this year’s budget is based. Also, the inflation rate is expected to reach 2.5% by the end of the year, and the RON/EUR exchange rate is expected to be 4.89 on average in 2021.

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