Daily Management Review

Eurozone GDP may grow at around 6% in 2021


Eurozone GDP, which includes 19 of the 27 EU countries, could grow between 4-6% next year, according to a forecast by the European Central Bank (ECB).

Earlier, ECB said that according to the results of the current year, the eurozone GDP could fall within 12%.

"In 2021, GDP growth will be approximately 6%, 5% and 4% with a good, medium and bad scenario," the regulator said.

It is explained that the weakening of quarantine measures will gradually restore economic activity in the region. At the same time, the ECB notes that the uncertain epidemiology of the virus and the alleged economic damage continue to put pressure on the economy. In particular, under an unfavorable scenario, GDP is expected to remain significantly below the level observed at the end of 2019, until the end of 2022.

The World Health Organization on March 11 announced an outbreak of a new coronavirus infection COVID-19 with a pandemic. According to the latest WHO data, about 3.1 million cases of infection have been recorded in the world, more than 217 thousand people have died.

In the context of the pandemic, the European Union introduced large-scale bans on social and economic life, among which there are trade restrictions in various countries, a ban on the operation of restaurants and hotels, closure of borders, including between Union states, and restrictions on air and ground communications. The EU economy is seriously affected by this situation. 

source: ec.europa.eu