S&P: Euro zone faces 2% recession, 10% if lockdown lasts

In its new report, S&P Global Ratings projected that the Eurozone economy will see a 2% recession this year due to the coronavirus crisis.

The ratings agency also warned that the economic contraction could deepen as much as 10% if the current lockdowns are extended into four months.

Key points

With the economic costs mounting quickly as measures to contain the virus increase... the eurozone and U.K. economies are now facing a recession of -2% for 2020.

For example, we estimate a lockdown of four months could lower eurozone GDP by up to 10% this year.

• EUR/USD stays firm and advances to 1.0940, US data in sight