OREANDA-NEWS. The economy of the European Union in the second quarter of 2020, according to preliminary estimates, contracted by 14.4 % in annual terms. This is a record drop since 1995.

Compared to the first quarter, the gross domestic product (GDP) fell by 11.9 %, according to a press release from the European Statistical Office. In the Eurozone, GDP declined by 15 % in annual terms, in quarterly terms by 12.1 %.

For comparison, in the first quarter the economy of the EU contracted by 3.2 %, in the Eurozone by 3.6 %.

The next EU GDP estimate will be published on August 14. The preliminary estimates are based on incomplete data and will be further revised in connection with measures to combat COVID-19, the report explains.

GDP of the USA in the second quarter contracted by 9.5 % compared to the same period last year. On an annualized basis (this would be the fall if this rate had decreased throughout the year), the American economy fell by a record 32.9 %.