A cyclist passes in front of the Eiffel Tower after a light snowfall during the night.
LUDOVIC MARIN | AFP | Getty Images
LONDON – The European Commission has become more negative in its outlook for the eurozone economy, projecting a lower growth rate for the region in 2021 as governments tackle new variants of the coronavirus.
The Brussels-based institution expects the 19-member region to grow 3.8% this year. In November, it had 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 faces problems of production, supply and administrative procedures. At the same time, European governments are concerned about virus mutations that are considered more contagious. The longer the health emergency drags on, the longer EU countries will have to extend social restrictions and blockages, which affects their economy.
“We are still in painful control of the pandemic, its economic and social consequences are too obvious. However, there is finally light at the end of the tunnel,” said Paolo Gentiloni, commissioner for economic relations. with the launch of vaccines.
In the future, the European Commission predicts that in 2022 GDP in the euro area will reach 3.8%, as it projected a rate of 3% of GDP for next year in November.