The overall economic activity of the Eurozone decreased less than expected from October to December 2020 and the production rates are expected to recover before the middle of 2021, Italy’s National Statistics Institute (ISTAT) reported.

The macro-economic situation in the Eurozone is “characterised by a high degree of uncertainty” due to the spread of the coronavirus pandemic, the continent’s vaccine rollout, and the spending of European Union (EU) recovery funds, Xinhua news agency quoted ISTAT as saying in its “Eurozone Economic Outlook” report issued on Monday.

The overall economic activity in the area slipped by 6.6 per cent last year, though the rate of decline slowed in the last quarter of the year, ISTAT said.

Inflation rate started climbing at the beginning of 2021, pushed by higher energy prices and a change in tax policies in Germany, ISTAT said.

It added that Eurozone prices are expected to continue to climb in 2021.

The economic health of the Eurozone is of great importance to Italy, which is one of Europe’s leading exporters.

The majority of the country’s exports go to other EU states.

–IANS

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