EU economy set to grow faster than expected thanks to vaccination

EU economy set to grow faster than expected thanks to vaccination

BRUSSELS — The European Union's economy is set to grow faster than expected in 2021 and 2022 thanks to the accelerating pace of vaccination across the bloc and the gradual ease of coronavirus restrictions. As of today, EU countries have administered 175.3 million vaccine doses and almost 30 percent of the population have received at least one dose. These conditions have encouraged the European Commission to upgrade its economic forecast: the executive now estimates that this year the EU's economy will grow by 4.2 percent while the eurozone will expand by 4.3 percent. The numbers represent an improvement from the respective 3.7 percent and 3.8 percent growth rates predicted back in February when the inoculation campaign was mostly stalled. The brighter outlook is also based on the anticipated impact of Next Generation EU, the bloc's 750 billion euros recovery fund. The fund is not yet operational but money is expected to be disbursed as early as July. For the time being, the Commission is only taking into account the effects of grants, which make up 312.5 billion euros of the total fund. For 2022, the Commission predicts similar volumes: 4.4 percent growth for both the EU and the eurozone, which