The economic recovery from the coronavirus crisis in the euro area will not be as strong this year as previously thought. According to credit rating agency Moody’s, the strict lockdowns in many European countries are causing headwinds in the recovery.

Moody’s now thinks that the euro area economy will grow by 3.7% this year, compared to a plus of 4.7% earlier. For 2022, the agency expects a growth of 3.9%. Moody’s says that the stimulus support measures of governments and good access to credit for households and businesses will continue to support the recovery.

In 2020, the 19-country euro area economy shrank by 6.8%, according to preliminary estimates by the European statistical office Eurostat.

Moody’s also lowered its growth forecast for the United Kingdom, but increased it for the United States and China. All in all, the recovery from the crisis in the world will not be as rapid in every country, according to the rating agency.