A cyclist passes the Eiffel Tower after a light snowfall overnight.
LUDOVIC MARIN | AFP | Getty Images
LONDON – The European Commission has become more negative about its outlook for the eurozone economy, projecting a lower growth rate for the region in 2021 as governments struggle with new coronavirus variants.
The Brussels-based institution expects the 19-member region to grow by 3.8% this year. In November, it forecast a GDP (gross domestic product) rate of 4.2% for 2021.
The latest forecasts come at a difficult time for the European Union, as the launch of the Covid vaccine is facing production, supply and bureaucracy problems. At the same time, European governments are concerned about mutations in the virus that are considered more contagious. The longer the health emergency, the more EU countries need to extend social restrictions and blockages, which affects their economy.
“We remain in the painful grip of the pandemic, its social and economic consequences too obvious. However, there is finally light at the end of the tunnel,” Paolo Gentiloni, the commissioner for economic affairs, said in a statement on Thursday. relationship with vaccine launches.
In the future, the European Commission expects 2022 GDP in the euro area to reach 3.8%, given a 3% GDP rate for next year in November.