There is a lot of momentum behind the recovery and we should see some solid growth numbers for the EU economies over the remainder of the year and into 2022. High vaccination rates and cautious public health policies are now paying growth dividends across the EU. With that said, the pace of the recovery is moderating as supply shortages and logistical bottlenecks weigh on output. Inventories are very low and many manufacturers simply can’t get the supplies they need. On the labor market side, it has been challenging to fill open positions due to skills mismatches.
In other words, short-term demand policy seems to have worked well both in Europe and the US. Savings rates are high and investment is growing. But COVID-related supply constraints are holding back growth and look set to last longer than expected. Policy makers on both sides of the Atlantic now need to focus on the medium- to long-term. In this vein, the EU’s Recovery and Resilience Facility [RRF] will finance a lot of new investment in green and digital technologies that will boost growth and productivity further while ‘future-proofing’ the economic structure by linking RRF funds to structural reform.
Join us for an in-depth analysis of the European economy and the newly released autumn 2021 Economic Forecast. Our panel will discuss the recent economic data and public policy developments through mid-October and weighs the prospects for European and global growth against a range of potential risks.
- Balazs Parkanyi, Counsellor for Economic and Financial Affairs, EU DELEGATION TO THE UNITED STATES
- Ben Carliner, Senior Economist, EU DELEGATION TO THE UNITED STATES
- Yvonne Bendinger-Rothschild, Executive Director, EACCNY [Moderator]
This webinar is funded by the European Union.