Economists polled by Reuters indicate that a resurgence in coronavirus infections after lifting lockdowns is the biggest threat to the Eurozone economy, and offer a bleak outlook for the region’s GDP and inflation over the coming year. 90% of economists feel that a second wave of cases is the biggest risk the Eurozone economy is likely to experience.

The pandemic has already driven most countries into recession due to the lockdowns which resulted in economic activity coming to a near halt in most sectors. Even lockdown measures have been lifted in most countries, consumer confidence and business sentiment remain cautious, holding back recovery.

Ever since the lockdowns have been lifted, several countries in the EU region have been experiencing a resurgence in the number of cases, which has raised worries that lockdowns could be reimpose to contain the spread of the pandemic. In addition, the secondary effects of the recession underway are yet to be felt, and could further increase unemployment and consumer consumption.

The unemployment rate in the Eurozone is already on the rise and could get worse in the coming months until an effective vaccine against COVID-19 is released. Economists have cautioned that it could take until at least 2022 for the Eurozone economy to return to pre-pandemic levels of growth.