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EU Reduced 2021 Growth Forecast to 3.8

The EU has reduced its 2021 growth forecast to 3.8. According to the Winter Period Economy Forecast report published,

EU Reduced 2021 Growth Forecast to 3.8
Yazar: Elif Dinçer

Yayınlanma: 11 Şubat 2021 20:54

Güncellenme: 21 Kasım 2024 13:26

EU Reduced 2021 Growth Forecast to 3.8

The European Union has reduced its growth forecast for 2021 from 4.2 percent to 3.8.

The EU has reduced its 2021 growth forecast to 3.8. According to the Winter Period Economy Forecast report published by the European Commission, the European Union announced that the growth forecast for 2021 was reduced from 4.2 percent to 3.8 percent. However, it was reported that the growth forecast for 2022 was increased from 3 percent to 3.8 percent. The European Union, which declared that the Eurozone inflation will be 1.4 percent in 2021, has announced its forecast that inflation will be 1.3 percent in 2022. Emphasizing that Spain and Italy will not be able to return to the pre-pandemic period before the end of 2022, the European Union stated that they expect the economic activity in the Eurozone to return to pre-pandemic levels before predictions.  

Emphasis on Support from ECB President Lagarde

Speaking to French BFM television, European Central Bank President Christine Lagarde said, “Financial conditions offered to the private sector have never been more attractive and cheap. We need to keep it that way as long as the crisis continues.” President Lagarde said, "We should not stop financial and monetary support suddenly when the pandemic is behind us and economies begin to open," adding that it would be necessary to exit support at one point, but that exit should be soft. Lagarde also told the Journal du Dimanche newspaper that the Eurozone economy will recover in the summer, and drew attention to the difficult task of financial authorities to withdraw their emergency support. Speaking at the General Assembly session of the European Parliament, Lagarde stated that the initiation of vaccination studies around the world was "promising" and stated that citizens are still struggling with the social and economic consequences of the epidemic and that uncertainties regarding the future continue. In addition, Lagarde said, “The increase in Covid-19 cases, mutations in the virus and strict restrictive measures reveal a significant downside risk to Eurozone economic activity.”
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