Euro Area Policies: 2021 Article IV Consultation with Member Countries on Common Euro Area Policies-Press Release; Staff Report; and Statement by the Executive Director for Member Countries
Journal: IMF Staff Country Reports
Year: 2022

The euro area economy is recovering rapidly. After falling by about 6 percent in 2020, euro area output has rebounded strongly since the second quarter of 2021 thanks to high vaccination levels, strong policy support, and increasing consumer and business adaptation to the pandemic, with real GDP having reached its pre-crisis level by the end of last year. Inflation accelerated in 2021, largely reflecting base effects from last year's low energy prices and transitory factors. Looking ahead, suppl