The coronavirus outbreak in 2020 has changed the economic outlook for Europe and interrupted its weak recovery. All members of the EU have been plunged into recession by the pandemic，and their unemployment rates were rapidly on the rise. The inflation and trade performance were also sluggish. In order to counteract the economic shocks and stabilize the financial markets，the European central bank has put in place a variety of measures to inject the liquidity while EU and its member states splashed out billions of euros on stimulus plans. With the support of these policy responses，European countries have poised for an economic revival over the summer，as the pandemic temporarily receded. However，the outlook is highly uncertain and downside risks are predominant，including the possibility of a more protracted pandemic，financial upheaval，and retreat from global trade and supply linkages. Under the baseline forecast — which assumes no occurrence of major risk events such as no-deal Brexit or sovereign debt crisis — the European economy may rebound after the spring of 2021 as the EU recovery plan proceeds.