Bank of America forecasts a deep recession in Europe with the economy shrinking almost 8 this year

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Bank of America sharply cut its 2020 growth forecast for Europe from 1 expansion to a 7.6 contraction.

More fiscal support is "urgently needed" to avoid bigger damage, the bank said in a note on Thursday.

The European economic chokehold, however, is expected to be temporary as BofA analysts anticipate GDP growth of 8.3 in 2021.

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The European economy will shrink by 7.6 this year, Bank of America predicted on Thursday, warning that policymakers are not going far enough in stimulating growth.

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