The highly contagious coronavirus delta mutation is likely to have only a limited impact on the euro area economy, which remains on track for strong growth this year and next. This was stated today, according to Reuters, the chief economist of the European Central Bank (ECB) Philip Lane. According to him, the European economy should benefit, among other things, from vaccination against covid-19.
“The fact that the delta has not required more extensive measures and that local measures are reasonably effective suggests that the impact is still limited in terms of the overall economy,” Lane told Reuters. According to him, the outlook for economic growth remains at a similar level as in June, when the ECB published its latest economic estimates.
“I’d say we’re not really too far from what we predicted for the whole year in June,” Lane said. According to the ECB’s June estimates, euro area gross domestic product (GDP) is expected to increase by 4.6 percent this year and 4.7 percent year on year.
Eurostat confirmed last week that euro area GDP grew by two percent in the second quarter after falling 0.3 percent in the first quarter. The eurozone economy has thus emerged from the double recession caused by the covid-19 pandemic. Year-on-year, euro area GDP rose by 13.2 percent in the second quarter.
According to Bloomberg, ECB Vice-President Luis de Guindos noted today that the ECB’s growth forecasts could improve. “All the leading indicators we have for the third quarter are positive,” he said in Pamplona, Spain, adding that the ECB will publish its economic forecasts in a matter of days.
Sources: ČTK, Bloomberg
