Germany’s Ifo institute said short term perspectives for Eurozone economy are “highly uncertain”. On the one hand, “the start of the vaccination campaigns gives some reason for optimism”. But on the other hand, “from the beginning of March onwards the pandemic situation has started to worsen almost everywhere with a reappraisal of the containment measures in some countries.”
Overall, Ifo expected that these negatives will have “only a transitory effect of the economy”. Eurozone GDP is expected to contract slightly by -0.4% qoq in Q1, then to recover from Q2 onwards, by 1.5% qoq, and then 2.2% qoq in Q3.
