The eurozone economy will grow faster than previously thought both this year and next, the European Commission said on Wednesday, despite rising concerns the fast-spreading Delta variant could lead to new curbs.
The EU’s executive arm also expected higher inflation this year for the 19-nation bloc than previously forecast, but estimated growth in consumer prices would slow next year.
The EU arm predicted the eurozone will grow by 4.8% this year, much faster than the 4.3% expansion it had forecast in May.
The upward revision is largely due to the reopening of the bloc’s national economies in the second quarter which benefited the services sector and is expected to boost tourism within the EU, the Commission said. It noted economic activity in the first quarter had also exceeded initial expectations.