European economic activity starting to show signs of recovery: report

ROME, March 29 (Xinhua) -- 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 Monday.

The macroeconomic situation in the eurozone is "characterized 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, ISTAT said in its "Eurozone Economic Outlook" report.

The overall economic activity in the area slipped by 6.6 percent 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, adding 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.