Although the economic situation improved somewhat across Europe in the second quarter of 2021, the pandemic is far from being under control.

The latest wave of coronavirus infections risks pushing back the previously announced economic recovery, warned Statec in its latest conjecture report.

Predictions for the second half of the year very much depend on the evolution of the health crisis. If countries are starting to reinstate restrictions following the spread of the Delta variant, it is likely that certain economic activities will run into trouble, said Statec - particularly sectors such as events and hospitality, where many people are likely to come into contact with one another. The travel and mobility sectors will also be limited by a new wave.

Statec also warned of further perturbations for worldwide supply and production lines, due to the inequality of vaccine campaigns on a global scale. An increase in demand had already led to difficulties in the supply chain, particularly with high price increases in construction and industrial sectors. Other pandemic-related delays and blockages could increase the risk of inflation.

The report indicated all these elements would put pressure on economic recovery. The European Commission's latest forecasts in early July were based on a 4.8% increase for this year. In June, Statec itself had calculated a 6% increase.