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Macroeconomic Outlook - October 2021

Main Messages

  • Economic activity in 2020 contracted due to the COVID-19 pandemic.
  • Labour market developments showed resilience and flexibility.
  • Inflation turned to the negative territory.
  • This crisis affected the whole spectrum of the economy.
  • Early introduction of targeted measures to contain the spread of the pandemic, along with measures to enhance the capacity and sustainability of the national health system and mitigate the economic effects of the crisis by supporting enterprises and protecting employment. Consumption supported by the expansionary fiscal policy.
  • The economic outlook for 2021 is surrounded by uncertainty, prospects influenced by the vaccination programme having an impact on the re-activation of the economy.
  • We expect return to pre-crisis levels by end 2021 and in the medium-term growth will hover close to its potential of around 2½-3%.
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