MNI BRIEF: Ifo Sees EZ Q4 Growth At -2.7%

Growth across the eurozone is set to contract by 2.7% in Q4 as the renewed lockdowns as Covid-19 infections surge again weigh on consumer confidence, Germany's ifo Institute said Tuesday. Their Eurozone Economic Outlook for the year sees the 2.7% decline replacing the 2.2% Q4 GDP growth forecast in the September Outlook.

In Q1 2021 research institutes expect the economy to grow by 0.7%, down from 1.5% anticipated previously. Growth is forecast to reach 3.0% in Q3 2021. The survey further noted that growth was stronger than expected in Q3 2020, leading to a better than projected -7.3% for the whole of 2020.

According to the survey, the outlook is overshadowed by great uncertainty about how the economy will fare as infection rates rise while coronavirus vaccinations begin. A hard Brexit could also disrupt supply chains.