Eurozone GDP to grow 4% in 2021 – ECB’s Lagarde
Eurozone’s gross domestic product is expected to grow 4% for the current year, European Central Bank (ECB) President Christine Lagarde announced on Thursday. She said that fiscal stimulus, mass vaccination efforts and the expected relaxation of coronavirus pandemic-related measures “underpin the expectation of a firm” economic rebound in 2021.
The real GDP contracted by 0.7% in the fourth quarter of 2020 and by 6.6% for the full 2020, Lagarde noted at a press conference, adding that the fourth trimester GDP remained 4.9% below its pre-pandemic level. The real GDP is “likely to contract again” in the first quarter of 2021, she also revealed. The economic development is “uneven” in the euro area, with services being more affected by the restrictions and the industry sector “recovering more quickly,” Lagarde stressed.
In 2022, the real GDP is estimated to grow 4.1%, while for 2023, the Eurozone economy is seen as expanding by 2.1%, she specified. The outlook remained “broadly unchanged” with downside risks remaining in the near-term, Lagarde also pointed out.
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