The eurozone’s economy continued to grow at a modest pace in the first three months of the year, but faces the threat of a decline in recession as Russia’s war on Ukraine keeps energy costs high and squeezes household purchasing power.
Restrictions intended to limit the spread of the Omicron variant of Covid-19 weighed on activity at the beginning of the year. This burden eased as the quarter progressed and the euro area economy appeared to be ready for a strong recovery this year.
