The EU is forecasting a recession of 'historic proportions' this year due to the coronavirus crisis.
The EU Spring 2020 forecast, published today, predicts the bloc will see its economy contract by a record 7.5% this year before growing by 6% next year.
It estimates Irish GDP will contract by 7.9% in 2020, but will then grow by 6.1% in 2021.
Greece is predicted to be the economy worst-hit this year, with an estimated 9.75% economic contraction this year, with Italy and Spain among the other countries forecast to suffer a contraction of more than 9%.
Poland is expected to suffer the smallest contraction this year at 4.25%.
Image via European CommissionConsumer prices are expected to 'fall significantly' in 2020 due to a drop in demand and the sharp decrease in oil prices.
The unemployment rate is expected to increase to 9.5% this year - up from 7.5% in 2019.
However, the EU says temporary government income schemes should help limit job losses amid a 'severe impact' to the labour market.
Paolo Gentiloni, European Commissioner for the Economy, said Europe is experiencing "an economic shock without precedent since the Great Depression".
He observed: "Both the depth of the recession and the strength of recovery will be uneven, conditioned by the speed at which lockdowns can be lifted, the importance of services like tourism in each economy and by each country's financial resources.
"Such divergence poses a threat to the single market and the euro area - yet it can be mitigated through decisive, joint European action. We must rise to this challenge.”
The EU figures come a day after data released by the Department of Finance yesterday showed an exchequer deficit of more than €7.4bn up to the end of April.
