UBS revises decrease its 2021 GDP development forecast for the euro space

In a observe, economists on the agency says that there’s a excessive danger of a contraction in each This fall 2020 and Q1 2021 for the Eurozone economic system, on account of new coronavirus restrictions. Thus, resulting in a double-dip recession to begin the brand new 12 months.

The agency minimize its 2021 development forecast for the euro space to five% from 6.2% beforehand however lifted its 2022 forecast to five.4% from 5% beforehand. On inflation, the companies sees euro space inflation at 1.1% this 12 months and 1.3% subsequent 12 months with “short-term spikes” a risk.

As for coverage within the area:

“We anticipate fiscal and financial coverage to stay supportive in 2021, with a cautious diploma of normalisation in 2022.”