The economic outlook has improved for the eurozone, according to the European Commission’s latest forecasts on Wednesday, but the institution warned that the delta variant is a “stark reminder” that the pandemic is not over, CNBC reports.

The executive arm of the EU had projected in May a 4.3 percent GDP rate for the euro area in 2021, followed by a 4.4 percent GDP rate in 2022. Now, the commission has updated its forecasts and is expecting a 4.8 percent growth rate this year, and 4.5 percent for 2022.

In comparison, the European Central Bank said in June that the euro area should grow 4.6% in 2021 and 4.7 percent next year.

“The EU economy is set to see its fastest growth in decades this year, fueled by strong demand both at home and globally and a swifter-than-expected reopening of services sectors since the spring,” Paolo Gentiloni, the EU commissioner for the economy, said in a statement.

Based on the latest forecasts, the commission expects the euro area to return to its pre-crisis levels in the last quarter of this year — meaning one quarter earlier than expected.

However, Gentiloni also said: “Crucially, we must redouble our vaccination efforts, building on the impressive progress made in recent months: the spread of the Delta variant is a stark reminder that we have not yet emerged from the shadow of the pandemic.”

The commission also mentioned that “there is evidence of a revival in intra-EU tourist activity, which should further benefit from the entry into application of the new EU Digital COVID Certificate as of 1 July.”

This document allows people which have tested negative for the virus, have recovered from it, or have been fully vaccinated, to travel more easily within the 27-member bloc. This is critical for tourism-dependent economies, namely Greece, Spain, Italy and Portugal.

Activity near St. Peter's Square in Rome, Italy, September 18, 2020.

EU revises up growth forecast for eurozone