Brussels Scales Back Expectations For EU’s Economic Recovery

The EU’s path to recovery from the economic effects of Covid-19 has been set back by the pandemic’s second wave and it will take at least two years for the bloc’s economy to return to pre-pandemic levels, Brussels has warned, the Financial Times reported. The recovery from the EU’s deepest downturn in history will be slower than previously expected, according to new forecasts published by the European Commission on Thursday, as the resurgence in the virus has forced most member states to impose fresh restrictions on activity in recent weeks. The commission expects a contraction of 7.4 per cent in the EU economy this year, unchanged from its previous forecast, but it downgraded its expectation for the recovery in 2021 by 2 percentage points from the 6.1 per cent expansion it forecast in May, to 4.1 per cent. Read more