EU Lowers Economic Growth Forecast for 2024 Due to COVID-19 Impact

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The European Union (EU) Commission on the 11th (local time) downgraded its economic growth forecast for this year. This is due to countries strengthening restrictions amid the continued spread of COVID-19 and the emergence of variant viruses.

In the '2021 Winter (Interim) Economic Forecast' announced by the EU Commission on the same day, the real Gross Domestic Product (GDP) of the Eurozone, which refers to the 19 member countries using the euro, is expected to increase by 3.8% year-on-year this year and next year, respectively.

The overall EU GDP is expected to increase by 3.7% this year and 3.9% next year.

Previously, in the '2020 Autumn Economic Forecast' announced last November, GDP was projected to increase by 4.2% in the Eurozone this year and 3.0% in 2022, and the EU was expected to grow by 4.1% this year and 3.0% in 2022.

The EU Commission stated, "The short-term outlook for the EU economy appears weaker than expected last autumn due to the spread of COVID-19."

The Commission added, "Now, there is light at the end of the tunnel," and "As large-scale COVID-19 vaccinations begin, pressure on healthcare systems eases, and restrictions are gradually relaxed, activity is expected to recover."

The EU Commission also forecasted, "The EU economy seems likely to reach pre-COVID-19 crisis levels earlier than expected in the previous forecast," but "the recovery will show significant variation among member states."

Accordingly, the EU Commission expects some member states to return to pre-COVID-19 levels by the end of this year or early next year, while others will take longer.

By member state, GDP this year is expected to increase by 3.2% in Germany, 5.5% in France, and 3.4% in Italy.

This content was produced with the assistance of AI translation services.