Most notably, uncertainty in the wake of the pandemic and the war in Ukraine remains significant. The automotive sector is a case in point. The number of car registrations remains well below pre-pandemic figures, as price level effects and legislative efforts to accelerate the green transition have made many consumers reluctant to purchase new vehicles (Slide 7, right-hand side).
[16] Instead, they hold on to their old cars for longer, with the average age of passenger cars having risen to 12 years, from 7 to 8 years not so long ago. In other words, even as past shocks abate, their broader repercussions may have persistent effects on the future productive capacity of the economy.