Probing the Depth of the Euro Area’s Lockdown Recession

(Bloomberg) -- By the time the strictest measures are lifted, the largest economies in the euro area will have spent almost two months in lockdown and early evidence suggests that the economic costs are huge -- with large differences across countries. Both the relative strictness and duration of containment measures as well as the industrial structure of the economies matter: Italy, which has imposed longer and more stringent constraints, faces the largest fallout from the lockdown, and Spain, highly reliant on tourism, will also suffer a large and persistent hit to activity, according to Bloomberg Economics.

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