What impact will lockdowns have on the European economy?

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Lockdowns Set to Cause Historic Economic Contraction in Europe

The implementation of virus-induced lockdowns is projected to trigger a severe and unprecedented economic downturn across the eurozone and the broader European region. The International Monetary Fund (IMF) has drastically revised its growth estimates, forecasting a significant contraction for the current year due to the widespread economic paralysis. This downturn is expected to be the most severe globally, with specific projections indicating substantial declines for major European economies.
Eurozone Economy Faces Historic Slump

The eurozone's economy is predicted to experience a staggering 7.5 per cent contraction in 2020, a decline described as a free-fall not seen since the Great Depression of the 1930s. This sharp downturn underscores the profound impact of the containment measures enacted to curb the spread of the novel coronavirus. While the IMF anticipates a gradual recovery in the latter half of the year and a projected growth of 4.7 per cent in 2021, the immediate economic damage is significant.
Key European Economies to Shrink Considerably

Several of Europe's largest economies are expected to face substantial contractions. The French economy is forecast to shrink by 7.2 per cent, a stark contrast to the previously expected 1.3 per cent expansion. Germany, an export-oriented powerhouse, is projected to see its economy contract by 7.0 per cent. Italy, which has been severely affected by the outbreak, is on course for a significant slump of 9.1 per cent in 2020.
Britain Also Faces Economic Contraction

Beyond the eurozone, Britain, which officially left the European Union in January, is also anticipated to experience a considerable economic contraction. The IMF projects the British economy will shrink by 6.5 per cent in 2020. This figure highlights the widespread economic repercussions of the pandemic and the associated lockdowns across the continent.

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What impact will lockdowns have on the European economy?

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