Eurozone | As vaccinations gain speed, upside risk is on the rise

The EU’s vaccine rollout will continue picking up steam in coming months after a lacklustre performance in Q1. Supply constraints have now been largely resolved, thanks to boosted production capacity. Supply is now also well diversified and therefore less susceptible to disruptions. Additionally, improvements in logistics will see further increases in daily vaccination rates.

What you will learn from this report:

• We estimate that the EU countries are well on their way to reaching the target of vaccinating 70% of adults before summer’s end.
• We see risks to our growth outlook for 2021 skewing to the upside on the back of accelerating inoculations, but downside risks remain tangible.
• Infection rates are falling across the EU but remain elevated as the more transmissible variants have taken over, which could delay reopenings. Still, our projections back up our view of gradual reopenings starting in Q2.