Europe Economic Forecast
The EU is expected to recover faster than previously expected thanks to the rolling out of available vaccines and easing of the Covid-19 containment measures. The recovery of course will not be evenly. Some EU countries will fully recover their 2020 losses this year while others in 2022.
Some of the EU countries expected to fully recover this year are Latvia, Lithuania, Luxembourg, and Poland. All of the EU countries are expected to grow this year with France (5.5%) and Spain (5.6%) taking the lead. The EU average GDP growth forecast is 3.7% for 2021 and 3.9% for 2022. It was interesting to note that Ireland was the only EU country with positive GDP growth in 2020 (3.0%). The growth rate is expected to increase slightly for the next two years. As for the Netherlands, the country had a GDP growth rate of -4.0% in 2020 and is forecasted to grow by 1.8% this year and 3.0% in 2021.