International Monetary: Energy crisis in Europe will increase the cost of living by 7%

The International Monetary Fund forecasts for the economic situation in Europe showed that due to the energy crisis, the cost of living in European countries will increase by 7% in 2022 and by 9% in the future.

According to the report: “Higher energy prices will increase European household living costs by 7% in 2022 and 9% in 2023 compared to 2021.”

The report notes that rising fuel prices “represent a significant supply disruption for companies,” especially those that consume a lot of energy in their manufacturing activities.

The IMF experts emphasize that “many European companies have already limited or are planning to limit the release of goods in sectors such as fertilizers, glass, steel and aluminum, which is likely to lead to additional price increases in value chains.”

They pointed out that “imports of natural gas from Russia, until recently the largest supplier of energy resources to the European Union, have practically ceased,” which “plunged the continent into an energy crisis.”

According to the report, the G-7’s announcement in September of its intention to try to cap the price of Russian oil provoked “further carving up of energy markets.”

Source: TASS

Related Stories

Leave a Reply