Capital Economics forecasts growth of 6.3% (from 8% previously) for the Greek economy in 2021, although it notes that the recovery after the pandemic seems to be peaking both in the euro area and internationally.
The initial post-pandemic recovery is estimated to be nearing its zenith, but strong support from policies and limited private sector debt is expected to allow most economies to grow at a healthy pace over the next two years.
The two countries that recovered the fastest are the United States and China, which is why they are the first to record a slowdown in their recovery, while the acceleration of the vaccination program plays a key role in overcoming the pandemic crisis.
On the other hand, as product shortages subside, economic activity normalizes and commodity prices decline, most economies are expected to see inflation decline toward central bank targets, with monetary policy eventually changing more slower than markets expect.
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