A cyclist rides past the Eiffel Tower after a light snowfall at night.
LUDOVIC MARIN | AFP | Getty Images
LONDON – The European Commission has become more negative about its outlook for the eurozone economy, predicting a lower growth rate for the region in 2021 as governments struggle with new variants of coronavirus.
The Brussels institution expects the 19-member region to grow by 3.8% this year. In November, it forecast a GDP rate of 4.2% (gross domestic product) for 2021.
The latest predictions come at a difficult time for the European Union, as the Covid vaccination of vaccines is facing problems regarding production, supply and red tape. At the same time, European governments are concerned about mutations of the virus that are considered more contagious. The longer the health emergency drags on, the longer the EU member states have to extend social restrictions and lockouts, which take their toll on the economy.
“We remain in the painful grip of the pandemic, its social and economic consequences are too clear. Yet there is finally light at the end of the tunnel,” Economic Affairs Commissioner Paolo Gentiloni said in a statement on Thursday. related to the roll-out of vaccines.
In the future, the European Commission expects 2022 GDP in the euro area to reach 3.8%, with a GDP rate of 3% for next year in November.