The prospects for recovery of the Eurozone economy are promising after the third wave of the pandemic and the extension of the restrictive measures, which in combination with the delays and the problems in the vaccination process have created doubts.
Although the economic recovery in the Eurozone was relatively slow in the first quarter of the year, the indications for the period until the end of the year are very positive, as economic activity increases sharply after the lifting of restrictions and the intensification of the vaccination chain. According to the latest estimates, the Eurozone GDP is expected to grow by 1.5% in the quarter ending in June, leaving behind the recession of the first quarter of the year, when the economy shrank by 0.6%.
The signs of recovery are confirmed by several indicators, such as the creation of new jobs and the increase in consumer spending. Consumers are expected to spend part of the savings they have accumulated during the ongoing constraints, the impact of which will be quite significant, as it is estimated that savings equivalent to at least 1.5% of Eurozone GDP will be spent. Bank figures already show an increase in expenditures corresponding to the levels of the previous year.
In addition, the tourism sector shows some signs of recovery, with data showing an increase in real estate bookings, approaching the percentage in the corresponding period last year. Of course, there is still a long way to go for a smooth and steady rise for this industry, which has proven to be the most vulnerable to the effects of the pandemic. Finally, the manufacturing sector is also resilient.
Whether the above estimates will be confirmed will depend to a large extent on the speed of delivery of the vaccine, as well as on the possible emergence of new variants of the virus that may require the imposition of new restrictions.