These developments boost foreign demand and so have positive spill-over effects on the euro area. Looking ahead, we expect economic activity to improve strongly in the second half of 2021, supported by a robust rebound in consumer spending and solid business investment.
Our latest staff projections currently foresee annual real GDP growth at 4.6 per cent in 2021, 4.7 per cent in 2022 and 2.1 per cent in 2023. The risks surrounding the growth outlook have become broadly balanced.