After a relatively sombre start to the year, the outlook for the Eurozone economy looks bright. Vaccination rollouts have gathered pace and a more sustained reopening of economies is on track for the second half of the year.

Activity should see a meaningful boost with consumer spending supported by pent-up demand and accumulated household savings. Continued support from the European Central Bank and the rollout of the EU’s Recovery Fund should also serve as a booster shot to growth in the second half of the year. However, concerns surrounding the uneven pace of growth across the bloc and higher inflation continue to unnerve investors.

Looking ahead, is Europe now poised to exceed its sluggish growth rate of the past decade?