ECB predicts economic growth in the European region
As indicated by the European Central Bank, an improvement of 4 % is expected, which means one tenth more than expected in December 2020
The euro zone economy will grow this year at a rate of 4 %, one tenth more than expected last December, although in 2020 the rebound will be 4.1 % instead of the 4.2 % previously estimated. Meanwhile, the bloc’s inflation rate will accelerate as a consequence of “temporary” factors this year and the next, according to Christine Lagarde, president of the European Central Bank (ECB).
Specifically, the central bank expects that the inflation rate in the euro area will stand at 1.5 % in 2021, compared to the 1 % forecast last December, while a year later prices will rise by 1.2 %, one tenth more than previously expected.
Looking ahead to 2023, the ECB’s macroeconomic projections remain unchanged from the forecasts announced in December 2020, with growth in Gross Domestic Product (GDP) of 2.1 % and an inflation rate of 1.4 %.
“While the overall economic situation is expected to improve throughout 2021, uncertainty persists around the short-term economic outlook, related in particular to the dynamics of the pandemic and the speed of vaccination campaigns,” said Lagarde at a press conference.
Thus, while, on the one hand, the better prospects for global demand, driven by significant fiscal stimulus, and progress in vaccination campaigns are encouraging, on the other hand, the ongoing pandemic, including the spread of Mutations of the virus, and their implications for economic and financial conditions remain sources of downside risk.
K. Tovar
Source: dpa
