EURO AREA ECONOMIC OUTLOOK
Major Euro area countries have seen their 2021 GDP forecasts repeatedly trimmed since the beginning of the year, due to a slow vaccination rate, a further tightening of containment measures and the “stop-start” distribution of the AstraZeneca vaccine.
That said, GDP is set to rebound later this year amid the gradual lifting of restrictions. Supportive fiscal and monetary policies, unleashed pent-up demand and the disbursement of recovery funds will rekindle domestic spending, while the reopening of the global economy will boost exports. A slow vaccine rollout crippling the tourist season, rising public debts and banks’ bad loans cloud the outlook, however.