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MNI BRIEF: Covid Rescue Fund a 0.5% Near Term GDP Boost: ECB

(MNI) Frankfurt

Next Generation EU and RRF funds are expected to raise euro area real GDP by around 0.5% in 2022 and 2023, according to an ECB Economic Bulletin study published Tuesday, with the greatest positive impacts for those member states with a lower GDP per capita in 2019.

NextGenEU-related growth will “largely” persist until the programme ends in 2026, the authors found, and its macroeconomic effects even be higher than currently estimated on account of confidence effects and structural reforms. However doubts remain over how effectively a one-off initiative can promote such reforms over the longer term.

MNI London Bureau | +44 20 3983 7894 |
MNI London Bureau | +44 20 3983 7894 |

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