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Economic outlook improving, but still poor

The euro-zone economy held up better than we anticipated in Q4 and the outlook for the coming quarters has improved. But with high inflation set to continue to weigh on household incomes and the drag from higher rates likely to intensify, activity looks set to remain weak.  Next week, we will look out for the account of the ECB’s January meeting. Final inflation figures for December and Germany’s ZEW for January will also be released.

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