BRUSSELS: The euro zone will rebound from its Covid-19 slump more than expected, the European Commission said on Wednesday, but some countries won’t reach pre-crisis levels before the end of 2022 — an argument for continued suspension of EU borrowing limits.
The aggregate growth of the 19 countries sharing the euro currency should be 4.3 per cent this year and 4.4 per cent in 2022, the European Union’s executive arm said, revising upwards its forecast from February of 3.8 per cent growth in both years.
“The EU and euro area economies are expected to rebound strongly as vaccination rates increase and restrictions are eased. This growth will be driven by private consumption, investment, and a rising demand for EU exports from a strengthening global economy’’, it said.
The forecast brings the Commission closer to the International Monetary Fund, which last month said it expected 4.4 per cent growth in the euro zone this year.
“Growth rates will continue to vary across the EU, but all Member States should see their economies return to pre-crisis levels by the end of 2022’’, the Commission said. — Reuters
Oman Observer is now on the WhatsApp channel. Click here
