Getty ImagesLONDON– The European Commission has actually turned more negative on its potential customers for the euro zones economy, predicting a lower growth rate for the region in 2021 as federal governments come to grips with new versions of coronavirus.The Brussels-based institution expects the 19-member region to grow by 3.8% this year. In November, it had actually anticipated a 4.2% GDP (gross domestic item) rate for 2021. The most recent projections come at a difficult time for the European Union as its Covid vaccine rollout deals with problems around production, supply and bureaucracy. At the very same time, European governments are worried about anomalies of the infection that are deemed more infectious. The longer the health emergency situation drags, the longer EU countries need to extend social restrictions and lockdowns, which takes their toll on the economy.”We remain in the agonizing grip of the pandemic, its economic and social effects all too obvious. There is, at last, light at the end of the tunnel,” Paolo Gentiloni, commissioner for financial affairs said in a declaration on Thursday in relation to vaccine rollouts.Going forward, the European Commission expects 2022 GDP in the euro location to reach 3.8%, having projected a 3% GDP rate for next year in November.Looking at individual countries, Germany is seen growing by 3.2% in 2021, having actually contracted 5% in 2020. France on the other hand is expected to see a GDP rate of 5.5% this year, after dropping more than 8% in 2020. The European Commissions projections presume that social limitations will be slightly alleviated in the 2nd quarter of 2021, however that there will however be some sectoral steps still in place in 2022.

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