Eurozone Economy to Grow at Slower Pace in 2021: Deutsche Bank

Despite optimism surrounding the COVID-19 vaccine rollout, Deutsche Bank has revised its growth forecast for the Eurozone economy lower for the current year. The investment bank now expects Eurozone’s GDP to come in at 4.6% for 2021, a whole percentage point lower than its previous forecast made back in November 2020, before the onset of the second wave of the pandemic and the next round of lockdown measures that were imposed.

All is not bleak, however, as far as the global economy at large is concerned. Even thought Deutsche Bank forecasts a slower pace of growth in the Eurozone economy, it has revised its economic growth projections for other key countries higher, including the US, UK as well as India.

According to its revised estimates, the bank expects the UK economy to post a 5.7% growth in 2021, up from 4.6% previously. The biggest revision has occurred with regards to the US economy, with its 2021 GDP now estimated to be 6.6%, a sharp jump from the previous forecast of 4% instead. Meanwhile, India’s economy is forecast to grow at 10.2% in 2021, versus 7.9% previously.

The Deutsche Bank expects the UK economy to return to about 98% of its pre-pandemic state by the end of this year, adding, “UK’s excellent vaccination programme should see restrictions phased out gradually over the first half of the year, resulting in a very strong Q2 and robust Q3.”