Research Briefing | Feb 18, 2022

Eurozone weekly economic briefing: Covid risks are out, war risks are in

The crisis between Russia and Ukraine continues to dominate the headlines. Although we expect the direct economic impact for the eurozone to be limited, geopolitical tensions continue to put enormous pressure on energy prices at a time when inflation is already at historically high levels, further squeezing household real incomes.

What you will learn:

  • Despite the uncertain situation, investors remain optimistic about the outlook.
  • With Covid concerns now firmly receding and an improving medical situation in most of Western Europe, several governments are already announcing plans to ease restrictions.
  • We continue to expect the euro area to go through a soft patch at the start of the year, but activity will regain momentum moving into Q2.
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