Eurozone weekly economic briefing | Rising Covid cases in the eurozone – the tide has turned

As Covid cases continue to rise in Europe, some governments have started to introduce new restrictions, while others have been discussing potential measures. We expect targeted measures across some countries mainly according to the health situation, but other factors, such as domestic political situations, will be relevant.

What you will learn:

• The major risk is that not only growth will be directly affected by government decisions, but also that consumer confidence will be strongly affected as well.
• With private consumption expected to be the major contributor to growth next year, looming decisions on restrictions do not bode well for the European outlook.
• Our view, outlined in a recent Research Briefing, continues to be that inflation remains contained over the coming years, unless growth is stronger or commodity prices are higher than expected.

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