It seems that 2020 may be one of the most difficult years in the euro zone economy, with the spread of the Covid-19 around the world and the economic losses experienced by the country as a result of the closing measures, the European Commission's report for the economy of the euro region in 2020 is even darker.

According to its report on the economic outlook the European Commission predicts eurozone GDP to shrink by 7.7 percent in 2020, while public debt and budget deficits will increase.

The committee expected that with the contraction of the economy this year, the inflation rate will slow to 0.2% in 2020, before accelerating to 1.1% next year, as a result of a large recession in consumer prices.

Efforts to stimulate the euro area economy will boost the eurozone's budget deficit to a total of 8.5 percent of GDP this year from 0.6 percent last year, before the overall gap shrinks again to 3.5 percent in 2021.

The Commission said, however, that rising public debt would take longer to decline, and predicted that eurozone debt would jump to 102.7 percent of GDP this year from 86 percent last year, and only decline to 98.8 percent in 2021.

Expectations show that France’s GDP will drop by 8.2 percent in 2020, rising by 7.4 percent in 2021, while Germany is expected to record a 6.5 percent decline, to rise back to 5.9 percent in 2021.

With regard to Italy, it is anticipated to post the largest decline of 9.5 percent in 2020, the recover by 6.5 percent in 2021.

Italy's debt could rise to 158.9 percent of GDP this year before falling in 2021, due to a huge rise from the 134.8 percent already recorded in 2019, the highest level since World War II.

As of 10:03 GMT, the EUR/USD traded at 1.0783 after opening the day at 1.0839, while the lowest level was at 1.0782.