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European Office Outlook Spring 2020

European Commercial - May 2020


Autor: Mike Barnes

Reihe: Savills Spotlight

Anbieter: Savills

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  • Erscheinungsdatum : 20.05.2020
  • Seiten : 8 Seiten
  • Datei-Typ : PDF-Datei
  • Größe : 1,98 MB
  • Sprache(n) : Englisch

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As health professionals point to falling coronavirus cases across much of Europe, questions are mounting as to the speed of return to normal working practices and the impact on the economy.

Government stimulus packages are keeping Europe's economy on life support, with public debt levels forecast to rise by an average of c.20% in the eurozone (EZ) area during 2020, in order to maintain employment levels through furlough schemes. The optimism for a V-shaped recession with a strong bounce back are waning, with the EZ unemployment rate forecast to rise from 7.4% at end 2019 to over 10% by the end of 2020. Early evidence is present with Germany's unemployment rate rising from 5.0% to 5.8% during April alone. Longer-term repercussions of the increased government debt burdens across Europe could likely point to higher corporate taxes/introduction of a solidarity tax once the pandemic has passed in order to service debt levels and avoid sovereign default.

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