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Press release

Euro-zone economic outlook

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Economic activity dropped less than expected in Q4 2020, yet the recovery will start only later this year.

Inflation increased at the beginning of the year mainly due to the increase in energy prices and the normalization of German VAT and will remain rather high during 2021.

The outlook is subject to high uncertainty. Both upside and downside risks are mainly due to pandemic evolution, speed of vaccine distribution and effectiveness of the Recovery and Resilience Facility program.

Reference period: Q1-Q3 2021

Date of Issue: 29 March 2021

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