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Economic Research: European Economic Snapshots: Policy Is Keeping The Impact Of The Second COVID Wave At Bay

As we enter 2021, Europe's economic recovery is on hold as the region battles a spike in COVID-19 cases. The rebound will be slower than we forecast in October, since some restrictions on economic activity will likely stay in place until second-quarter 2021, when a vaccine should be widely available. Fiscal and monetary policy will likely continue to bridge the gap, with measures easing financing conditions for firms and maintaining a safety net for households.