Brussels raises 2021 eurozone growth forecast, sees strong 2022



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Brussels raises 2021 eurozone growth forecast, sees strong 2022

On Thursday, EU Commission, the Brussels-based governing body of eurozone’s administrative operation, had issued a statement saying that the EU’s economic growth would balloon faster that prior estimates as the region’s economy appeared to be clawing back sharply from a pandemic associated recession, while the economy would highly likely to continue to swell strongly deeper into 2022 with budget deficits narrowing and public debts declining across the board.

In point of fact, latest EU Commission remarks came forth just a couple of days after ECB (European Central Bank) head Lagarde, ex-IMF Chief, had underscored the region’s economic resilience to a higher inflation saying the Bank had no plans to raise rates in a near-term despite a barrage of sky-scrapping inflation indicators.

Meanwhile, expressing a jubilant tone over an apparently successful bail-out in EU economy from pandemic-led contractions, European Commission Vice President Valdis Dombrovskis said, “Our measures to cushion the blow of the pandemic and to ramp up vaccinations across the EU have clearly contributed to this success”.

EU economy set to grow faster-than-anticipated in 2021 and 2022

According to EU Commission data released earlier in the day, combined GDP (Gross Domestic Product) in 19 eurozone member states sharing euro would grow by 5.0 per cent in 2021 following a 6.4 per cent recession in 2020, while the EU Commission also had projected a growth of 4.3 per cent in 2022 and a 2.4 per cent in 2023, much-higher than a May 2021 growth forecast of just 4.3 per cent.

Aside from that, the Commission stated that the bloc’s inflation would perk up to 2.4 per cent this year after scoring a reading of 0.3 per cent in 2020, however, inflation would slow down to 2.2 per cent in 2022 and 1.4 per cent in the following year.

Nonetheless, eurozone inflation would more likely to hit a plateau over next four months, added EU Commission forecast.