The Euro Area is widely expected to fall into recession, as the European Central Bank's rate hikes, intended to tame inflation, put the brakes on economic activity, on top of the energy crisis. However, the common currency union is exhibiting a revival in the last quarter of 2023 and especially in the weeks prior to the Christmas holidays, offering a glimpse of hope that the expected recession might not be as severe as feared.

The weekly OECD GDP tracker, measuring economic activity, has been consistently accelerating since mid-October 2022, with the growth rate reaching as high as 3.3% y/y in the week ending December 4, 2022, the highest level since June 2022.

The indicator's dynamic over Q4 suggests that GDP growth figure could be positive, following a 2.3% y/y in Q3. The flash GDP estimate is going to be released on January 31st, so the weekly indicator can provide early signs about Euro Area's economic performance.