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Eurozone economy bounces higher than expected

The European Commission has improved its economic forecast for this year for the eurozone countries. In Brussels, they are talking about the so-called rebound in production and financial indicators after the crisis caused by the pandemic and quarantine restrictions.

Now people are returning to work with clients and, according to the European Commission, by the end of the year, the eurozone economy will grow by 5%. In 2022, the rate of rise in indicators will slow down slightly, but still, as Brussels believes, will be above 4%.

The prospects for recovery and growth of the eurozone economy are associated with a number of factors, including the development of the epidemic and how quickly supply adapts to active changes in demand.

The European Commissioner for the Economy, Paolo Gentiloni, also mentioned other important reasons for the growth of the eurozone:

“A significant rebound in the economy was accompanied by an unexpectedly rapid rise in inflation. Annual inflation in the Eurozone in October amounted to 4.1%. This reflects strong underlying effects such as higher energy prices and disruption to supply chains.”

Analysts’ greatest fears are related to the consequences of structural changes in the economy due to the pandemic. Inflation could be even higher if supply and output problems persist. The cost of wages in this case will result in a rise in prices for consumers.

Message Eurozone economy bounces higher than expected first appeared on grand hector.

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