Eurozone: Policymakers design a much more serious response – ABN Amro

There has been a flurry of announcements by governments of measures to support the eurozone economy in the face of the major coronavirus shock. Economists at ABN Amro set out the numbers for the Eurozone as a whole.

Key quotes

“For the Eurozone as a whole the fiscal and liquidity measures total around EUR 2 trillion (around 18% GDP).”

“Given the size of the economic shock, governments and the ECB will likely need to do more going forward, but over the last few days, eurozone policymakers have started to design a much more serious response.”

“The contraction in GDP is expected to be even larger in Q2 than in Q1. We have pencilled in around -2% qoq in Q1 and around -3% in Q2, but the risks to these forecasts are clearly tilted to the downside.”