KPMG | Wed, Oct 21, 2020
by Yael Selfin
A resurgence in COVID-19 infections has led to additional measures being announced across Europe in the past two weeks to contain the pandemic. The inevitable economic fallout could slow and even reverse, the nascent economic recovery, bringing with it the danger of a double-dip recession.
While most European economies are under significant strain from the pandemic, their prospects coming out of the crisis diverge. The uneven exposure to the pandemic, varying fiscal room for manoeuvre and the different sector make-up have the potential to drive a wedge between the growth rates of different European economies.