Using a similar methodology, Bank of Canada researchers estimate that the increase in policy uncertainty observed since the reintensification of the euro-area crisis late last year may have lowered the level of euro-area GDP by roughly 1 per cent.
U.S. firms have experienced an unexpectedly rapid surge in demand along with the reopening of the economy, while their employment has not yet fully recovered. This has brought about serious bottlenecks such as labor shortage and difficulty procuring materials and parts.