Eurozone weekly economic briefing – Gloomy outlook just before Christmas
The spread of Omicron across Europe coupled with the holiday season will probably result in a surge in infections over the next few weeks. This will pose strong pressure on governments to act, both in terms of further restrictions and in boosting vaccination campaigns. In the meantime, data this week has added to the gloomy outlook.
What you will learn:
- Consumer confidence fell to its lowest since March and our Recovery Tracker posted its consecutive sixth decline.
- A look at what we were expecting this time last year revealed that growth has been a touch stronger, driven by robust rebounds in Italy and France.
- Spain remained the main laggard while Germany suffered from the supply bottlenecks that brought industrial activity to a standstill.
Tags:
Related research
Post
Nowcast shows wage growth slowing sharply
Our sentiment data, developed with Penta, suggests that UK private sector wage growth slowed sharply in March and early-April. If official data mirrors our sentiment indicator, it should keep the Monetary Policy Committee on track to cut interest rates in the summer.
Find Out More
Post
The euro and depreciation – shake, shake it off
Our new forecast assumes a slower euro appreciation against the dollar over the coming years than we previously anticipated. Relative productivity, terms of trade, and the current account will likely be less supportive of the euro than we thought. In addition, a stronger stock market than initially envisaged will attract more financial flows into the US than we had expected.
Find Out More