EU Economy Commissioner Paolo Gentiloni presents the bloc’s latest economic forecast in Brussels, Belgium, on May 12, 2021.
(Thierry Monasse/Getty Images)
GDP growth will accelerate in the European Union in the coming months, but risks connected to high debt and deficit levels, along with uncertainty about the future of the economy, will persist. On May 12, the European Commission predicted that the bloc’s GDP will expand by 4.2% in 2021, up from its previous 3.7% growth forecast. According to Brussels, the acceleration of vaccination campaigns across the bloc, the softening of lockdown measures, the initial disbursements from the Recovery Fund and better economic conditions in the United States and China will help economic activity rebound in Europe. Still, the 2021 GDP expansion will not fully compensate for the 6.1% contraction that the COVID-19 pandemic caused in the bloc in 2020. The European Union’s GDP predictions also suggest that northern European countries will recover from the losses of 2020 faster than those in the south. ...
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