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Double-Dip Recession Beckons in Europe as Lockdowns Drag On

  • Economists are abandoning projections for first-quarter growth
  • Stricter lockdowns and a slow vaccine rollout have hit hard
First Working Day of 2021 In Germany's Financial Capital
Photographer: Alex Kraus/Bloomberg
Updated on

The euro-area economy is poised to shrink again at the start of this year as the resurgent pandemic plunges the region into a double-dip recession.

Analysts at banks including JPMorgan Chase & Co. and UBS Group AG are downgrading forecasts to account for renewed lockdowns -- in some places tougher than ever -- and the prospect that the new coronavirus variant ravaging the U.K. will do the same on the continent.