A cyclist rides past the Eiffel Tower after a light nighttime snowfall.
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LONDON – The European Commission has turned more negative about its outlook for the eurozone economy and expects a lower growth rate for the region in 2021 as governments grapple with new variants of the coronavirus.
The Brussels institution expects the region with 19 members to grow by 3.8% this year. In November, it had forecast a rate of 4.2% of GDP (gross domestic product) for 2021.
The latest projections come at a difficult time for the European Union, as the introduction of the Covid vaccine has problems with production, delivery and red tape. At the same time, European governments are concerned about mutations of the virus that are considered more contagious. The longer the health emergency lasts, the longer EU countries have to extend their social restrictions and lockdowns, taking their toll on the economy.
“We remain in the painful grip of the pandemic, the social and economic consequences of which are all too obvious. Yet there is finally light at the end of the tunnel,” said Paolo Gentiloni, Commissioner for Economic Affairs in a statement Thursday in relationship with the roll-out of vaccines.
Going forward, the European Commission expects 2022 GDP in the eurozone to reach 3.8%, after projecting a GDP of 3% for next year in November.