European Commission raises Eurozone 2021 GDP forecast from 3.8% to 4.3%

  
  Analysis

The EU expects the euro area economy to rebound more strongly

Europe
  • Eurozone 2021 GDP growth forecast raised to 4.3% from 3.8% previously
  • Eurozone 2022 GDP growth forecast raised to 4.4% from 3.8% previously
  • Eurozone 2021 inflation seen at 1.7%
  • Eurozone 2022 inflation seen at 1.3%
  • Euro area economic output to reach pre-virus levels in Q4, sooner than expected
  • Sees all EU economies returning to pre-virus GDP by the end of 2022
The bump higher in the forecasts owes much to the assumption that they expect a significant easing in virus restrictions, especially during 2H 2021 (summer vacation period also) as vaccinations allow for economies to reopen in a more meaningful way.
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