Research Briefing | Nov 30, 2021

Eurozone 2022 themes: Now for the hard part

Ipad Frame - Eurozone-2022-themes-Now-for-the-hard-part

The eurozone pushed on with a strong recovery in 2021, but in many ways that’s been the easy part. With reopening tailwinds mostly exhausted, the bloc will face different challenges in 2022.

What you will learn:

  • We still expect another year of robust growth – close to 4% – but the recovery is likely to be choppy due to resurgent Covid risks, supply chains problems, and surging energy prices.
  • Our expectation of strong growth continues to rest on consumer spending as we transition from public- to private-led demand growth.
  • Supply chain issues are still a constraint for now, but we expect bottlenecks to recede next year.
Back to Resource Hub

Related Services

Office building in London

Post

High debt costs suggest European office price correction

Our analysis suggests a 10% correction is needed on average for the major office markets in Europe to compensate for the higher cost of debt, with prime yields required to soften by 10bps-75bps to generate a low-risk interest coverage ratio at a reasonable LTV.

Find Out More

Post

Why an ageing population doesn’t mean soaring inflation

What’s the future for inflation? Joachim Nagel, the new president of Germany's central bank, believes the rapidly ageing global population will play a key role – ramping up pressure on prices in the medium term. While we agree slowing labour supply will stifle output growth, in his recent discussion Nagel failed to fully consider the demand side of the argument.

Find Out More