Prospects for the euro-area economy to end-2022

Subject

Prospects for the euro-area economy to end-2022.

Significance

The war in Ukraine has significantly altered the economic outlook for the euro-area economy. On average, GDP growth forecasts for 2022 have been revised downwards by 1.2 percentage points (pp) and consumer price inflation upwards by 2.9 pp. Unemployment has returned to pre-pandemic levels but weak consumer confidence is inhibiting household spending. The economies most exposed to the war are those of Germany, Italy and Central-Eastern Europe (CEE).