Key risks to the economy are posed by an escalation of the military conflict with Russia and a longer-than- expected global price surge In particular, considerable uncertainty over whether or not the military conflict will escalate could worsen expectations and cause investors to put off their investment decisions, which would dampen economic recovery.
However, over the past decade, productivity growth in the euro area has fallen to around 1¼ per cent on average while the US improved its productivity performance to around 2½ per cent per annum.