The COVID-19 pandemic and its consequences continued to shape the development of the global economy in 2021. Regionally, economic
activity was heterogeneous, although the rapid recovery in industrial production resulted in supply bottlenecks and sharp
price increases in many areas. The domestic economy expanded again, although economic activity fluctuated once more strongly
over the year and was largely influenced by the COVID-19 health care policy measures. With the economic recovery, average
hours worked also increased, which had a positive effect on per capita incomes. Together with improved consumer confidence
and savings reserves from the previous year, this increased households' willingness to spend. Rising raw material prices had
an inflationary effect, causing the Consumer Price Index to rise significantly, particularly at the end of 2021.
Research group:Macroeconomics and Public Finance – Labour Economics, Income and Social Security