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Faster EU Economic Recovery Expected

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In the EU’s Summer 2021 interim Economic Forecast, European Commission experts predict that the economies in the EU and euro area are set to expand by 4.8% this year and 4.5% in 2022. This growth outlook is significantly higher in the EU (+0.6 pps.) and the euro area (+0.5 pps.), while for 2022 it is slightly higher in both areas (+0.1 pp.)

Real GDP is projected to return to its pre-crisis level in the fourth quarter of 2021 in both the eurozone and the EU. EC experts explained that, among others, private consumption and investment are expected to be the main drivers, supported by employment that is expected to move in tandem with economic activity.  Strong growth in the EU’s main trading partners should benefit export of EU goods, whereas service exports are set to suffer from remaining constraints to international tourism.

Source: EC / Euractiv

CET Editor

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