Presenting the European economic forecast for Spring 2021, Eric Manner, EU Commission’s Chief Spokesman, said that “after a long winter, the Spring #ECforecast shows positive news on the growth outlook.”
Key takeaways
“Eurozone 2021 GDP growth forecast raised to 4.3% from 3.8% previously.”
“Eurozone 2022 GDP growth forecast raised to 4.4% from 3.8% previously.”
“Eurozone 2021 inflation seen at 1.7%.”
“Eurozone 2022 inflation seen at 1.3%.”
“Euro area economic output to reach pre-virus levels in Q4, sooner than expected.”
“Sees all EU economies returning to pre-virus GDP by the end of 2022.”
“Upward revisions mainly due to national recovery plans. “
“Risks to the outlook remain high, broadly balanced.”
EUR/USD reaction
EUR/USD whipsawed on the EU’s upward revision to the growth forecast but kept its recovery mode intact around 1.2135, where it now wavers.
