- Ukraine situation however remains a risk factor
- Rising energy prices as a result of Ukraine crisis will be a drag on businesses
- Mood in retail, manufacturing sectors have improved significantly
- But supply bottlenecks continue to be a problem
That pretty much sums up the situation in Europe right now. The omicron impact is one that is short-lived and unlikely to cause another major drag on the economy but inflation and surging price pressures might. That could either come from further escalation in Russia-Ukraine tensions or persistent supply-side issues - or worse, both.
