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Reality check for eurozone growth expectations
IHS Markit recently updated its growth forecasts. Our forecast for 2021 annual growth in the eurozone was edged up, to 3.8%, reflecting the smaller than initially expected q/q decline in GDP in Q4 2020 (revised to -0.6%) but also a slight offset from the minor downward adjustment to our q/q estimate for Q1 2021 (to -1.0%). Downward adjustment to external forecasts Chart 1 highlights a striking divergence of forecasters' eurozone growth expectations for 2021. While IHS Markit's forecast has remained relatively steady, and sub-4%, market consensus expectations and those of official institutions (in this case the ... (full story)