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Recession in the eurozone: will this time be different?


Key factors of uncertainty during a recession are its length and the pace of recovery. The 2008 recession lasted long and the growth pick-up was very gradual. The current recession is far deeper but should also be more short-lived because its origin is a pandemic so when the lockdown is lifted activity picks up mechanically. According to the European Commission, the recovery should also be swifter than in 2009.

TRANSCRIPT // Recession in the eurozone: will this time be different? : May 2020

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Four countries, four ways to recover 5/20/2020
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A new, massive shock 4/8/2020
The Covid-19 pandemic has triggered a recession in the Eurozone that looks likely to be deep but short-lived. After a difficult year and a half on the economic front, the Eurozone was showing some resilience and was even beginning to show signs of stabilisation. The current shock – in demand, supply and uncertainty simultaneously – has completely changed the outlook. The health measures taken- which have been necessary to protect the population from the virus- have created the conditions for a recession. Monetary and fiscal policymakers have reacted swiftly and, so far, proportionately. However, the profile of the economic recovery remains unclear and will be crucial in assessing the damage ultimately caused by the pandemic.

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