IMF Says Vaccination Drive Behind Euro Area's Rapid Recovery

The International Monetary Fund said on Monday that high vaccination levels underpin the euro area's robust economic recovery in the face of the COVID-19 pandemic

MOSCOW (UrduPoint News / Sputnik - 06th December, 2021) The International Monetary Fund said on Monday that high vaccination levels underpin the euro area's robust economic recovery in the face of the COVID-19 pandemic.

"The euro area economy is recovering rapidly, thanks to high vaccination levels and continued forceful policy support," a five-page statement wrapping up an IMF mission to the 19-nation area reads.

The international lender said the area's output had rebounded strongly since the second quarter of this year, although supply pressures, energy price hikes and new curbs on mobility could put a damper on the fourth quarter.

Any uncertainty is largely tied to the evolution and legacies of the pandemic, the IMF report said, citing the emergence of new coronavirus variants and the expiration of state support.

On the upside, it said, faster than expected adjustment to COVID-19 could boost activity and increase consumption, while pandemic-induced digitization and automation could spur growth.

The IMF forecast sees weak underlying inflation in the eurozone despite recent price increases. IMF staff said inflation risks were "tilted to the upside" as transitory factors could persist for longer than expected.