Private Consumption in Eurozone to Drop 7.8%, Unemployment to Peak at 10.8% in 2020 - ECB

BRUSSELS (Pakistan Point News / Sputnik - 05th June, 2020) Private consumption in the euro area is set to decline by nearly eight percent this year, while the unemployment rate is expected to reach 10.8 percent due to the COVID-19 pandemic, the European Central Bank (ECB) said on Thursday.

The ECB also said that the real GDP of eurozone countries was expected to fall by 8.7 percent this year.

"Turning in more detail to the components of GDP, private consumption is expected to decline by 7.8% in 2020 and recover gradually by 2022," the ECB said in a press release.

The automobile industry and tourism are suffering more than other sectors of the economy in light of the health crisis, according to the press release.

"The unemployment rate is expected to react to the pandemic and peak at 10.8% in the third quarter of 2020," the ECB said.

The unemployment rate would also reach pre-crisis levels only in 2022 (8.8 percent), according to the press release.