As infection rates across all major European economies continued declining and vaccine rollout picked up significantly for a third month in a row, output growth in the Euro Area is projected to pick-up in Q2. The easing of confinement measures favours a strong rebound in the services sector, while gains in manufacturing output are likely to be more contained owing to prolonged supply chain disruptions. As for the UK, quarterly data on intra- and extra-EU trade flows suggest that Brexit disruptions to the region’s export sector are not likely to wind down in the coming months.