Eurozone | Industry offering some hope for a better year ahead

Strong industrial production numbers for November offer some hope that the worst is over, supporting our view of a gradual resolution of supply-side issues. Moreover, the strong gains in Spain and Italy could very likely result in some positive surprises for Q4 GDP.

What you will learn:

But the bigger picture is of a slowing eurozone economy in Q1, with a series of downside risks to our call of pick-up from Q2.
In particular, a big chunk of our forecast for 2022 continues to rest heavily on the shoulders of consumers and specifically on normalizing saving ratio.
But the latter could be heavily affected by the evolution of the pandemic and behavioural shifts among consumers.

Topics: Europe, Eurozone, Inflation, Labour markets, Coronavirus, Industry, Consumer, Employment, Recovery, Covid19, Inflation risks, Economic recovery, Supply chain, Covid restrictions, Covid crisis, Covid cases, Omicron