A cyclist passes 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 struggle with new variants of the coronavirus.
The Brussels-based institution expects the 19-member region to grow 3.8% this year. In November, it had projected a rate of 4.2% of GDP (Gross Domestic Product) 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 bureaucracy. At the same time, European governments are concerned about mutations in the virus that are considered most contagious. The longer the health emergency drags on, the longer EU countries will have to extend social restrictions and blocks, which affects the economy.
“We remain in the painful grip of the pandemic, its social and economic consequences very evident. However, there is finally light at the end of the tunnel,” said Paolo Gentiloni, commissioner for economic affairs, in a statement on Thursday regarding the launch of vaccines.
In the future, the European Commission expects 2022 GDP in the euro area to reach 3.8%, having projected a GDP rate of 3% for next year in November.