Deutsche cuts euro area 2021 GDP forecast; ups U.S., UK, India

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LONDON (Reuters) - Deutsche Bank has slashed 2021 economic growth forecasts for the euro area by a whole percentage point, citing spillover of the ongoing pandemic-linked activity restrictions but it upped predictions for Britain, the United States and India.

In a report on Tuesday, the investment bank cut gross domestic product (GDP) projections for the euro area to 4.6%, from the 5.6% projected in November. In contrast, it said it saw the UK economy expanding by 5.7%, up from 4.6% previously.

“UK’s excellent vaccination programme should see restrictions phased out gradually over the first half of the year, resulting in a very strong Q2 and robust Q3,” Deutsche said, adding this would take the economy to around 98% of its pre-pandemic GDP level.

For the United States, Deutsche raised its forecast to 6.6% growth, a sharp jump from 4% it saw in November. It sees global economic growth at 6.8%.

It also now sees India’s economy growing 10.2% this year, revising November’s prediction of 7.9%

Reporting by Thyagaraju Adinarayan and Sujata Rao