In the monthly economic bulletin, ECB said, “the global economy remains on a recovery path, although persisting supply bottlenecks, rising commodity prices and the emergence of the Omicron variant of the coronavirus (COVID-19) continue to weigh on the near-term growth prospects.”
“Supply bottlenecks are expected to start easing from the second quarter of 2022 and to fully unwind by 2023.” But “the future course of the pandemic remains the key risk affecting the baseline projections for the global economy.” Risk to growth outlook are “tilted to the downside” and balance of risks to global inflation is “more uncertain”.
Eurozone growth is “moderating” but “activity is expected to pick up again strongly in the course of this year.” Output is expected to exceed pre-pandemic level in Q1 of 2022. However, as some Eurozone countries have reintroduced tighter restrictions, “this could delay the recovery, especially in travel, tourism, hospitality and entertainment”.
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