Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The European Commission's Summer 2021 Economic Forecast sees economic growth in both the eurozone and wider EU rebound faster than previously expected, as activity to date has exceeded expectations and an improvement in the health situation has allowed for a faster easing of restrictions.
Both the EZ and EU economies are now projected to grow by 4.8% in 2021 and by 4.5% in 2022 -- similar to the ECB's latest projections -- which is significantly better than anticipated in the spring forecast. GDP in both areas is now expected to return to the pre-crisis level in Q4 2021, one quarter earlier than previously expected. Growth will primarily be driven by private consumption and investment.
Inflation was also revised higher in the summer forecast, as "rising energy and commodity prices, production bottlenecks due to capacity constraints and the shortage of some input components and raw materials, as well as strong demand both at home and abroad are expected to put upward pressure on consumer prices this year." Inflation in the EZ is now seen at 1.9% in 2021, but falling back to 1.4% in 2022. Among the member states, Germany is projected to record the highest inflation rate of 2.8% in 2021.
Source: European Commission
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.