EUROZONE OUTLOOK BRIGHTENS BUT VACCINE WOES PERSIST

The eurozone economy is expected to start growing again in the spring after severe contractions last year, with momentum picking up speed in summer as COVID-19 vaccinations are rolled out, the European Commission (EC) told Leonie Kijewski of Deutsche Presse-Agentur (dpa).

In its latest forecast, the commission projected economic growth for the 19-member currency bloc to reach 3.8 percent in both 2021 and 2022. Growth in the broader European Union (EU), the commission estimated, would come in at 3.7 percent in 2021 and 3.8 percent the following year.

This is a slightly better forecast than initially anticipated, with the commission attributing this to "the stronger than expected growth momentum projected in the second half of 2021 and in 2022."

A post-Brexit trade deal, struck at the last-minute in December, also improved the outlook, as the agreement reduced the costs of Britain's departure from the bloc's single market.

Economies in the 27 EU countries were hit hard by coronavirus containment measures in 2020. With shops across the globe shuttering their doors and movement between and within countries restricted, the EU countries' economies experienced severe depressions last year: the second quarter of the year saw a stunning drop of 11.7 percent in the euro area and 11.3 percent in the EU.

However, when containment measures were lifted across the bloc mid-year, the economies quickly rebounded, giving ground for hope of recovery when countries lift their restrictions again.

But this means that the commission's forecast also stands on shaky ground.

Several risks could throw the economies back into contraction. For example, if vaccine roll-outs go slower than planned because deliveries are delayed, this could prevent countries from lifting restrictions - and lead to lower economic output.

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