Posted July 7, 2021, 12:32 PMUpdated July 7, 2021, 4:28 PM
This is a Europe with two faces: on the old continent, growing concerns about health and optimism on the economic front are strong. In its summer economic forecast released on Wednesday, the European Commission now expects 4.8 percent growth in the European Union and the eurozone.
This is a significant increase of 0.6 points compared to the last forecast for March. By 2022, the growth rate of the European Union and the euro will reach 4.5 per cent, of which 1.2 per cent will be due to the impact of the European recovery plan.
“Our economy is making a strong comeback, and all parts of the puzzle are being re-positioned,” said Valdis Dombrovsky, vice president of the commission. Increases consumer confidence . Brussels also points out that the restrictions and restrictions imposed on Europe in the first quarter have had a smaller-than-expected economic impact due to their flexibility.
Strong economic recovery among the EU’s major trading partners favors exports as well. All this leads the Commission to anticipate the EU’s return to pre – crisis GDP levels from the last quarter of this year, no longer in the first quarter of 2022.
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Brussels expects 6% growth this year (4.2% in 2022) and France will experience the most significant recovery on the continent since the decline in activity in 2020. The strongest. Germany is expected to grow 3.6 percent, followed by Spain and Italy at 6.2 percent and 5 percent, respectively. Ireland continues to show arrogant economic health: As the only state out of 27 to experience growth in 2020, it will record + 7.2% this year. Overall, the recovery has been marked more in Central and Eastern European countries than in the North, but the latter is better resisted by 2020.
Inflation is also rising again. Brussels expects the European Union to grow 2.2 percent and the euro 1.9 percent this year. After all, this is a result of rising energy prices, which will not cause concern for the commission, which expects 1.5% to return to moderate inflation by 2022.
The fourth wave
Optimistic but not wanting to be enjoyable. While Europe welcomes the progress of vaccination, it is concerned about the prevalence of the Delta variant of Kovid-19 and the appearance of new variants. The Commission points out that the health background “makes the power of recovery” uncertain, and their predictions are based on a fourth wave of circumstances.
“In order to sustain the recovery, it is essential that policies are in place to support the economy for as long as necessary and to accelerate vaccination efforts,” he said. The Delta variant’s propaganda is a cruel reminder that we have not yet come out of the pandemic, “said Pol.