Eurozone to see double-dip economic contraction

According to a Reuters survey of economists, the Eurozone is currently approaching its first double-dip economic downturn in nearly a decade. Moreover, economists deemed that government funding allocated to monetary stimulus is inadequate to stage a robust rebound in 2021.

After forecasting a steady recovery, economists rendered a 2.5% contraction this quarter as large portions of Europe grapple with an upsurge of new virus cases. The prediction came after the economy had seen a 12.6% expansion in the third quarter.

In the first quarter of 2021, the economy is expected to see a 0.8% growth. The forecast stands below the 1.0% expansion predicted in October. However, it might record a 7.4% contraction this year. While it came milder than the -8.0% decline predicted in October poll, the forecast is still by far the sharpest on record.