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EU economy to grow by 4.2% in 2021 — EC forecast

These projections are higher than the numbers announced by the EC in February when the forecast included 3.7% economic growth in 2021 and 3.9% in 2022

BRUSSELS, June 2. /TASS/. The volume of the EU countries’ economy by the end of 2021 will increase by 4.2%, in 2022 the growth will reach 4.4%, according to a forecast from the European Commission (EC).

These projections are higher than the numbers announced by the EC in February when the forecast included 3.7% economic growth in 2021 and 3.9% in 2022. Currently, experts from the EC believe that by the end of 2022, all EU member states will reach pre-pandemic volumes of their economies - in 2020, the total volume of the EU economy decreased by 6.1%.

The experts believe that high rates of vaccination of the EU population and gradual softening of anti-coronavirus measures in Europe and the world should have a positive effect on the level of business activity in the EU.

Experts also forecast a possible decline in the average public budget deficit volume in the EU countries from 7.5% of GDP to below 4% by 2022. The average volume of the public debt of the EU states at the end of 2021 expected at 94% of GDP. Inflation is set to rise by 1.9% in 2021 and 1.5% in 2022, while unemployment will remain at 7.6% and 7%, respectively.

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