The European Commission has improved its economic forecast for this year for the euro zone countries. Brussels speaks of a so-called rebound in production and financial indicators after the crisis caused by the pandemic and quarantine restrictions.
Now people are getting back to work with customers and the European Commission estimates that the eurozone economy will grow by 5% at the end of the year. In 2022, the rate of growth of indicators will slightly decrease, but still, as it is believed in Brussels, will be higher than 4%.
Prospects for recovery and growth of the euro zone economy are associated with a number of factors, among them – the development of epidemics and how quickly the supply adapts to the active change in demand.
European Commissioner for the Economy Paolo Gentiloni also mentioned other important circumstances of eurozone growth:
“The significant rebound in the economy was accompanied by an unexpectedly rapid rise in inflation. Annual inflation in the euro area was 4.1% in October. This reflects strong underlying effects such as higher energy prices and supply chain disruptions.”
Analysts’ biggest concerns are about the effects of structural changes in the economy due to the pandemic. The rate of inflation could be even higher if supply and volume problems persist. Wage costs in this case will result in higher prices for consumers.