Euro zone growth in 2021 to rebound less than expected

February 11, 2021: The euro zone economy will rebound less than earlier expected from the coronavirus slump this year as a second wave of the pandemic put economies in new lockdowns, the European Commission said, adding 2022 growth will be stronger than earlier thought.

The Commission forecast economic growth in 19 countries sharing the euro would be 3.8% this year and the same in 2022, rallying from a 6.8% drop in 2020. Last November, the Commission forecast 2021 euro zone growth at 4.2% and 2022 growth at 3.0% against a 7.8% recession in 2020.

"The near-term outlook for the European economy looks weaker than expected last autumn, as the pandemic has tightened its grip on the continent," the EU executive arm said in an interim economic forecast for the 27-nation bloc.

"The European economy is thus expected to have ended 2020 and started the new year on a weak footing. However, light has now appeared at the end of the tunnel. As vaccination campaigns gain momentum and the pressure on health systems to subside, containment measures are set to relax gradually," it said.

Reuters