Latest Projection Predicts Economic Recovery of EU to Pre-pandemic Levels Only in Late 2022

In its latest economic forecast for the end of 2020, the European Commission projects an economic drop by 7.8% in the euro area and 7.4% on the level of the EU.

For 2021, economic recovery of 4.2% of is projected for the euro area, and for the EU economy, 4.1% in 2021 and 3% in 2022.

– Growth will return in 2021 but it will be two years until the European economy comes close to regaining its pre-pandemic level – said Paolo Gentiloni, Commissioner for Economy.

The EC notes that it is difficult to make predictions in such an uncertain situation, which they describe as the deepest recession in the history of the EU.

– After the deepest recession in EU history in the first half of this year and a very strong upswing in the summer, Europe's rebound has been interrupted due to the resurgence in COVID-19 cases – Gentiloni says.

The EC says that some lockdown measures will be maintained all the way until the end of the projected period (2022), but that gradual easing is expected in 2021.

When it comes to the global forecast, the EU excluded, the GDP is expected to drop 3.8% in 2020 and to recover by 4.7% in 2021 and 3.7% in 2022.

European Commission

Paolo Gentiloni

euro area

pandemic

coronavirus

GDP

economic crisis