According to the economists surveyed by Reuters, the Eurozone economy is likely to see slightly stronger growth, in light of the European Union (EU) EUR750 billion coronavirus relief package.
Key findings
“The economists surveyed July 22-28 also concluded it would take two or more years for eurozone gross domestic product to reach pre-COVID-19 levels.
About three-quarters of economists, or 29 of 38, said their confidence around the prospects for eurozone economies from next year onward had improved, including three who said it had significantly improved.
But for now, they only marginally upgraded their growth forecasts.
The latest poll showed GDP shrinking 11.8% this quarter compared with the first three months of the year, better than the 12.2% contraction forecast a week ago. It is then forecast to grow at 8.1% in the current quarter and 2.8% in the next compared with 8.3% and 3.1% earlier.
In 2021, the economy is predicted to expand 1.4% in the first quarter, unchanged from the previous poll, followed by 1.1%, 0.8% and 0.6% in the second, third and fourth quarters, slightly better than median predictions for growth at 1.0%, 0.6% and 0.6% made just before the deal was agreed.
Germany forecast to grow 4.7%, up from 4.4%, while for France 2021 growth was upgraded sharply to 7.3% from 4.2%.”
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