The associated containment measures have dampened activity, particularly in consumer services such as travel, tourism, hospitality and entertainment. The current pandemic wave and associated restrictions are likely to continue to have a negative impact on growth at the start of this year. Two other factors, namely supply bottlenecks and high energy costs, are also expected to dampen economic activity in the near term.
However, the economic impact of the current pandemic wave appears to be less damaging to activity than previous ones. Moreover, the aforementioned bottlenecks will still persist for some time, but there are signs that they may be starting to ease. This will allow the economy to pick up strongly again later this year.