European Union officials are predicting an economic rebound by mid-year. However, the rebound might depend a lot on the European Union’s progress in combating the negative effects of the coronavirus pandemic.
The officials in a quarterly report said that the European economy is forecast to grow to reach 3.7 percent in 2021 and slightly better in 2022, according to media reports. The report said “Economic growth is set to resume in the spring and gather momentum in the summer as vaccination programs progress and containment measures gradually ease.”
The report also pointed out that it has been ‘challenging’ over the past few months, however, ‘there is a light in the end of the tunnel’. The economic slowdown in the European Union began in 2020 as almost all countries imposed severe lockdown measures to combat the spread of the infection.
Also, the fresh wave of the infection has had its impact on the economy. The International Monetary Fund’s forecast had downgraded Europe’s growth outlook for 2021 and highlighted a poorer performance compared to China and the US.
In January, Janet Henry, chief global economist at HSBC Holdings Plc in London, told the media, “We’ve started the year on a softer footing, particularly in Europe, because much of Europe seems to have gone back into recession. China is already back above pre-pandemic levels and, on our projections, the U.S. will be by the end of 2021. For the euro zone, it’ll be the end of 2022.”