(11 November 2021) – The EU economy is rebounding from the pandemic recession faster than expected. Growth resumed in spring and continued unabated through summer, underpinned by the re-opening of the economy.
Despite mounting headwinds, the EU economy is projected to keep expanding over the forecast horizon, achieving a growth rate of 5%, 4.3% and 2.5% in 2021, 2022 and 2023 respectively.
Growth rates for the euro area are projected to be identical to those for the EU in 2021 and 2022, and 2.4% in 2023.
This outlook depends heavily on two factors: the evolution of the COVID-19 pandemic and the pace at which supply adjusts to the rapid turnaround in demand following the re-opening of the economy.