According to a report by the International Monetary Fund, Europe will be able to survive the upcoming winter thanks to the built fuel reserves, but it runs the risk of once again experiencing record-high natural gas and electricity costs.
The International Monetary Fund indicates that by mid -September 2022, Russian gas supplies to Europe decreased by 80 % in terms of annual value, and exports to Bulgaria, Denmark, Finland, Germany, Lithuania, the Netherlands and Poland were completely completely.
The specialists at the Fund begin by assuming that there are enough wintertime reserves already amassed, but they also leave room for an emergency situation including a combination of unusually cold weather and a complete cessation of Russian gas imports.
According to their estimations, in this situation, Europeans will need to look for ways to cut their fuel use by 6%, which would mean a loss of around 3% of GDP for the most vulnerable nations.
According to the report, Prices for electricity and natural gas in 2022. According to some reports, the rise in energy costs is predicted to raise the cost of living in Europe by 7% and 9%, respectively, in 2022 and 2023.
According to the International Monetary Fund, advanced European economies would see inflation of 8.3% in 2022 and 6.2% in 2023.
According to the analysis, prices in Eastern European nations will rise by 13.3% and 11.8% in 2022 and 2023, respectively, with the exception of the conflict and Turkey.
Western countries face high energy prices and high inflation due to the imposition of sanctions on Moscow and the policy of abandoning Russian fuel.
Due to the high cost of fuel, particularly gas, the European industry has significantly lost its competitive advantages, which has had an impact on other economic sectors.
The United States and European nations are also dealing with a record that has not been seen in many years.
From Novosti.
In 2023, the International Monetary Fund anticipates record gas and electricity costs in Europe.
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