Thus, the expectation is for more real wage catch-up to occur in 2023 and 2024, but real wage growth to be negative in the short-term.
This is consistent with survey evidence collected by the Central Bank, which showed that the majority of workers expected wages to increase by less than inflation during 2022.22 Despite considerable uncertainty in the economic outlook for the euro area, nominal wages are projected to grow at around double historical rates, of 4.0%, 4.8% and 4.0% between 2022 and 2024.