American international investment bank, Goldman Sachs has lowered the forecast of the main economies in the Eurozone and anticipates its GDP to plunge by 1.7%.
Golman Sachs lowers Eurozone’s GDP. The American International investment bank, Goldman Sachs has lowered the economic outlook for the major economies in the Eurozone. The agency predicts that the Eurozone’s GDP will contract 1.7%, compared to the expected growth of 1%. However, the entity estimates a rebound of 3.5% in 2021.
Germany would reduce its economic activity by 1.9% this year, while in 2021 it will grow 3.6%. In France, the economy will shrink 0.9% in 2020 to grow 3% in 2021, while Italy's GDP will fall 3.4% this year and rise by 3.5% the following year. Spain’s (GDP) will register a 1.3% contraction in 2020 due to the impact of the Covid-19 but will rebound by 4.3% in 2021.
That said, Deutsche Bank, forecasts that the Eurozone’s GDP will fall 22% in the second quarter, while in Japan will drop by 1.5% during the same period and 12.3% in the United States.