Eurozone weekly economic briefing – A mixed start to the year
The news for Europe at the start of the year has been mixed. The spread of the Omicron variant has resulted in a predictable surge in infections, in many countries widely surpassing previous waves.
What you will learn:
- There are encouraging signs that this new variant is having a much milder impact, partly because of the increased protection offered by vaccines.
- This means lighter restrictions and a smaller economic impact than seen during the last winter wave.
- December PMIs confirm the notion of a slowing eurozone economy at end-2021, with Germany being the country hit hardest.
BoK’s monetary policy to tighten even as hiking cycle ends
Even without rate hikes, central banks' monetary policies can effectively tighten if the nominal neutral rate falls below the policy rate. We expect this will be the case for the Bank of Korea this year, as the gap between the policy rate and the nominal neutral rate widens.Find Out More
China: Emerging green shoots in Spring, but not out of the woods
We now incorporate a faster recovery from the post-Covid exit wave and raise our 2023 full-year GDP growth forecast to 4.5% (from 4.2% previously).Find Out More