EU growth forecast for 2021 raised to 4.8%, but with inflation warning

European Union officials markedly raised their outlook for the euro-area economy and said there’s a higher risk of inflation taking hold as loosening virus restrictions allow demand to snap back.

The European Commission increased its growth forecast for the currency bloc to 4.8% from 4.3% previously, while predicting better performance in 2022 too. The economy already did better than initially projected in the first quarter, and recent data suggests a strong rebound in private consumption is already under way, it said.

“The European economy is making a strong comeback,” European Commission Vice President Valdis Dombrovskis said in a statement. “We will have