Europe Reports Highest Number of Cases in Various Regions... "Double-Dip Warning for Q4"

France reports 16,096 new cases on the 24th
Lockdown responses by region in various countries
European economy, which showed signs of recovery, faces potential contraction again

[Asia Economy Reporter Naju-seok] As the novel coronavirus infection (COVID-19) rapidly spreads across Europe, concerns are growing that the European economy may fall into a double-dip recession.

Olivier V?ran, Minister of Health, is explaining the spread of the novel coronavirus infection (COVID-19) in France on the 23rd.
[Image source=AP Yonhap News]

On the 24th (local time), CNBC cited experts reporting that the European economy, which shrank by -11.8% in the second quarter due to lockdown measures, could experience negative growth again in the fourth quarter. This suggests that the European economy, which showed a rapid recovery after the lifting of lockdowns, may face shocks again due to the spread of COVID-19.

According to the international statistics site Worldometer, on this day, France reported 16,096 new COVID-19 cases, Spain 10,653, and the United Kingdom 6,634. In France, this was the largest increase in new cases since the COVID-19 outbreak.

European countries have already taken measures such as strengthening social distancing. However, instead of nationwide lockdowns, regional lockdown policies focusing on areas with high COVID-19 spread are being implemented.

Kasten Brzeski, Chief Economist at ING, said, "The possibility of a double-dip recession in the fourth quarter of this year is increasing," and predicted, "More regions will announce lockdowns gradually."

Chris Williamson, Chief Economist at IHS Markit, said, "The risk of a double-dip is high," adding, "The risk has increased regionally as we approach the fourth quarter," and "This will constrain economic growth."

Concerns are also growing in the United Kingdom. The UK government has ordered pubs and restaurants to close early and recommended that office workers work from home rather than commute. Cathal Kennedy, European Economist at RBC, expressed concern, saying, "The UK government's COVID-19 response measures may mainly affect the service sector," and "This could slow down economic activity in the future." There are warnings that if the situation continues, daily new cases could reach 50,000 by mid-October this year in the UK.