European Commission lifts Eurozone 2021 GDP forecast from 3.8% to 4.3%

Dhwani Mehta FXStreet

Presenting the European economic forecast for Spring 2021, Eric Manner, EU Commission’s Chief Spokesman, said that “after a long winter, the Spring #ECforecast shows positive news on the growth outlook.”

Key takeaways

“Eurozone 2021 GDP growth forecast raised to 4.3% from 3.8% previously.”

“Eurozone 2022 GDP growth forecast raised to 4.4% from 3.8% previously.”

“Eurozone 2021 inflation seen at 1.7%.”

“Eurozone 2022 inflation seen at 1.3%.”

“Euro area economic output to reach pre-virus levels in Q4, sooner than expected.”

“Sees all EU economies returning to pre-virus GDP by the end of 2022.”

“Upward revisions mainly due to national recovery plans. “

“Risks to the outlook remain high, broadly balanced.”

EUR/USD reaction

EUR/USD whipsawed on the EU’s upward revision to the growth forecast but kept its recovery mode intact around 1.2135, where it now wavers.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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