Nations start to feel impact of virus on their economies

The unprecedented damage that the novel coronavirus pandemic has done to major economies has been revealed in sharp focus as several European nations have published their latest figures.

Countries including Germany, France, and Spain have suffered greatly in economic terms because of their lockdowns, with the 19 members of the European Union that use the euro for a currency seeing their economies shrink at the fastest rate on record during the first quarter of 2020, according to the Financial Times.

The gross domestic product of those nations, which collectively are known as the eurozone, fell by 3.8 percent in comparison to the same quarter last year, according to Eurostat, the branch of the EU responsible for statistics.

It was the largest drop since records began in 1995 and eclipsed the fall seen during the 2008 global financial crisis.

The poor economic performance of many European nations is likely to push the European Central Bank to take steps to protect EU member nations.

The bank's president, Christine Lagarde, told EU leaders last week the eurozone's GDP could end up plummeting by around 15 percent this year.

Both France and Spain have seen major contractions of their GDP during the first three months of the year. France's fell by 5.8 percent year-on-year while Spain's fell by 5.2 percent.

In the case of France, it was the largest fall in GDP since records began in 1949.

Meanwhile, Germany's Federal Employment Agency has revealed that more than 10 million workers have asked the state to subsidize their wages because they have been stood down by their employers as a result of the lockdown.

Germany has said it is bracing itself for a huge recession that will be more severe than anything seen since the Great Depression of the 1930s.

Berlin said this week its economy will likely contract this year by 6.3 percent.

Retail sales reportedly fell at the fastest pace for more than a decade but there was strong growth in online purchases and food orders.

In France, a 6.1 percent contraction in household consumption and an 11.8 percent fall in investment did most of the damage to its GDP.

Insee, the nation's official statistical bureau, said: "GDP's negative evolution in Q1 2020 is primarily linked to the shutdown of 'non-essential' activities in the context of the implementation of the lockdown since mid-March."

Spain's economy is believed to be especially vulnerable to financial hardship because of COVID-19 due to the nation's reliance on tourism, which has been particularly badly impacted by travel restrictions.

Germany, which has allowed some shops to reopen in recent days in an attempt to stimulate the economy, has taken a more cautious approach to its tourism sector and has extended its warning to citizens not to travel internationally until June 14.

Foreign Minister Heiko Maas said Germany's fight against the pandemic meant he could not "recommend carefree travel".

"People won't be able to spend a holiday as they usually know it, on full beaches or in full mountain huts," the BBC quoted him as saying.