According to the Eurostat data, published on Thursday, in the fourth quarter of 2021, the economy of the eurozone unexpectedly contracted by 0.3% compared to the previous quarter. By the end of the year, the economy of the region lagged 2.7% from the level before the COVID-19 pandemic in 2019.
The decline in GDP in the fourth quarter occurred due to restrictions introduced in connection with the spread of the delta variant of the coronavirus, which led to a decrease in demand, especially in the service sectors.
Eurocommission preliminarily estimated that the economy of the eurozone grew by 5.1% in 2021. At the same time, inflation in the eurozone reached 5.1% in January 2022, which is the highest level since records began in 1997.
Markets react to such news with volatility, reflecting the investors' anxiety regarding the prospects of economic growth and inflation. The question of further measures to support the economies of the eurozone countries remains on the agenda.
