Eurozone Key Themes 2024 – Fragile Recovery Will Gain Impulse 2023 | Oxford Economics | 7 December 2023 | Webinar

After grinding to a halt in 2023, we expect the cogs of the eurozone economy to start slowly turning again in 2024, gaining more momentum as the year goes on. Our key call is for faster disinflation, which together with a weak growth outlook will prompt the ECB to normalise policy earlier and more forcefully than what the markets are expecting. This should in turn help to usher in stronger consumption growth. But there are potential headwinds aplenty – looming fiscal consolidations, possible supply shocks or hysteresis effects holding activity back.