Partially because of this slack and moderate labor productivity growth, the hourly rate of wage growth remains at 2–2.5 percent, which is about half of the level prior to the global financial crisis.
While the uncertainty related to the evolution of the pandemic will likely dampen the strength of the recovery in the labour market and in consumption and investment, the euro area economy should be supported by favourable financing conditions, an expansionary fiscal stance and a strengthening in global activity and demand.