As national restrictions to fight the COVID-19 pandemic crisis were progressively lifted during 2021, the Euro Area experienced positive economic growth throughout the year. Even though in 2021-Q4 GDP in the the Euro Area grew only by a modest 0.29 percent relative to 2021-Q3, we observe a substantial increase (4.60 percent) relative to the same quarter of the previous year. The decrease in the unemployment rate to 7.13 percent, and the positive inflation rate reflect the economic recovery, with prices having increased by 1.73 percent relative to the previous quarter and 4.63 percent relative to the same period of the previous year. According to the OECD economic outlook, GDP is expected to continuously grow and to stabilize at an annual growth rate of about 4.0 percent towards the end of 2022. Unemployment will decline to 6.8 percent, and inflation is expected to stabilize at 1.75 percent in 2023.

April 2022