Eurozone Economy’s Growth Forecasts Lowered – Slow Vaccine Rollout Main Concern
Economists polled by Reuters forecast a slower pace of recovery for the Eurozone economy through Q2 2021, following the lockdowns imposed to fight the third wave of the pandemic currently underway. In addition, a slow rollout of the COVID-19 vaccine was highlighted as the biggest risk driving the lowering of economic growth projections for the current quarter.
Participants to the latest edition of the survey have forecast the Eurozone GDP to come in at 1.5% during Q2 2021, lower than their earlier projections for a 2.1% growth. With the economy falling into contraction during the previous quarter, the Eurozone is set to experience a double-dip recession before posting a slight recovery in the coming months.
Economists have raised concerns about the sluggish rollout of the vaccine, expecting it to delay the easing of lockdowns and resumption of economic activity in the region. Unlike other parts of the world, especially the US and the UK, the distribution of the vaccines across the Eurozone has been particularly slow and troubled by raw material shortages and other challenges.
The Eurozone economy is forecast to grow by 2.3% and 1.3% in Q3 and Q4 while the average growth for the entire year could touch 4.1%. This is lower than the estimates made in the previous edition of the poll, when economists expected a 4.3% growth in the economy for 2021.
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