The second recession in Europe is expected to deepen the recession

Milan, Ta. Friday, November 6, 2020

As winter sets in, governments in Europe continue to impose lockdowns. Governments are trying to keep the impact of the lockdown limited to certain industries, but they will have to pay a heavy price.

Italy has imposed a partial lockdown in Lombardy, one of the richest areas in its economic capital Milan. The Italian prime minister said the most populous areas were now divided into red, orange and yellow according to the extent of corona infection. While in Rome and the rest of the country relatively light restrictions have been imposed.

Germany has also closed bars and restaurants, while France has imposed stricter restrictions. Choir singing in churches in Switzerland has been discontinued. All these lockdowns are expected to lead to a deep recession in the euro area. According to Goldman Sachs, the economy will shrink by 2.3 percent in the last three months of 2020.

The second lockdown in France has had repercussions across the country. Small businesses struggling to survive against Amazon and the supermarket have not been able to withstand the lockdown. Books, toys, flowers and even dishes are considered unnecessary items in the lockdown and the shops will have to close for months.

Indonesia, on the other hand, is experiencing a recession for the first time in two decades. Millions lost their jobs in the third quarter of this year, and GDP shrank by more than 3.49 per cent. Consumption in households has declined and investment has also declined in the third quarter.

China, on the other hand, has temporarily barred entry to non-Chinese nationals from the UK. From November 6, all tourists coming to China from the US, France, Germany and Thailand will have to undergo a nuclear test and an antibody test for blood. In Ireland, meanwhile, corona infections have declined due to the imposition of fortnightly stringent restrictions across the country. The R rate has now dropped from one to between 0.7 and 0.9.