EU Forecasts Deeper Economic Hit From Pandemic

EU Forecasts Deeper Economic Hit From Pandemic
European Commissioner for Economy Paolo Gentiloni speaks during a media conference on the summer 2020 economic forecast at EU headquarters in Brussels, on July 7, 2020. Virginia Mayo/Pool/AP Photo
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BRUSSELS—The European Union’s executive arm forecasts that the bloc’s economy will contract more than previously expected because of the coronavirus pandemic, which has caused lockdowns on business and public life that are only slowly being eased.

The 27-nation EU economy will contract by 8.3 percent this year, before growing 5.8 percent in 2021, according to the latest predictions released on Tuesday by the European Commission.