Despite the rebound having started last summer, the EU and euro area economics are expected to strongly expand as vaccination rates increase and lockdown restrictions are eased. Labour markets are slowly improving as well, with employment having risen in the second half of 2020 and unemployed rates having decreased in most Member States.

The European Commission estimates the risks surrounding the outlook to be still high, as long as the COVID-19 pandemic’s shadow looms over the economy. Read the full Spring 2021 Economic Forecast here.