Vaccination progress and global trade rebound fuel brighter economic outlook for Europe
The European Union’s economy is expected to recover more quickly than initially forecasted, thanks to the acceleration of its COVID-19 vaccination campaign, which followed a slow start. According to the European Commission, the improved outlook is also supported by the €800 billion recovery fund and a stronger-than-expected rebound in global trade, primarily driven by the economic performances of the US and China.
The EU’s GDP is now projected to grow by 4.2% in 2021 and 4.4% in 2022, a notable upgrade from the earlier predictions of 3.7% and 3.9%. The eurozone is expected to see similar growth, with its GDP projected to increase by 4.3% in 2021 and 4.4% in 2022.
Paolo Gentiloni, the EU’s economics commissioner and former Italian prime minister, explained that the rapid vaccination efforts should facilitate the easing of restrictions during the second half of the year, further boosting the economic recovery.
