The European economy looks like it will shine a little brighter this year.
The European Commission presented Wednesday a more upbeat assessment of how the 27 economies will perform this year, citing an improved vaccination campaign and the expectation that EU-wide fiscal stimulus will kick in the second half of 2021.
The Brussels-based institution now foresees a gross domestic product rate of 4.2% for the EU in 2021, and of 4.4% for next year. In February, it said GDP would be 3.7% this year and 3.9% in 2022.
The prospects for the 19 countries that share the euro have also improved. Growth is now estimated at 4.3% this year, instead of 3.8% as forecast in February. The European Central Bank said in March that GDP would reach 4% in the euro area this year.
“The shadow of Covid-19 is beginning to lift from Europe’s economy,” European Commissioner for Economic Affairs Paolo Gentiloni said in a statement, adding that the “unprecedented fiscal support has been — and remains — essential in helping Europe’s workers and companies.”
“And of course, maintaining the now strong pace of vaccinations in the EU will be crucial — for the health of our citizens as well as our economies,” Gentiloni also said.
The latest forecasts come at an important moment for many EU nations as they announce — or in some cases, implement — a lifting of Covid-19 restrictions.
Greece is welcoming tourists from Friday onward. Belgium said on Tuesday that it intends to end almost all restrictions on June 9. The land border between Portugal and Spain has also reopened.
These are just some examples of how the economies are opening up ahead of the summer season, when many tourism-dependent nations will be hoping to attract more foreign visitors than last year.
