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Eastern EU economies may rebound quickly in 2021

Monday, February 22, 2021

Significance

Following sharp contractions across Europe in the second quarter of 2020 and a strong rebound in the third, most CEE countries have been able to maintain some momentum in October-December, despite a wave of COVID-19 infections and higher mortality rates. They are well placed to absorb the expected contraction in January-March and return to robust growth.

Impacts

  • Institutional mechanisms are in place to support economic recovery across the EU this year.
  • The ability of national governments to provide strategic direction will be key.
  • EU capacity to counter unexpected developments in the COVID-19 pandemic will continue to be tested.

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