Euro-Area Capacity to Recover as Demand Shock Lingers

(Bloomberg) -- The bulk of the coronavirus hit to the euro area economy reflects the simultaneous fall in demand and supply as lockdowns took effect. As restrictions continue to be lifted, capacity is rising, but demand is not moving up in lockstep -- resulting in 2020 gross domestic product declining 8.8%. While there’s set to be a 6.1% rebound in 2021, Bloomberg Economics expects some weakness to linger well into 2022.

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