With the escalation of the conflict in Ukraine, the sharp increase in energy prices has damaged the European Union (EU) economy by approximately 1 trillion dollars. However, the tense situation in the European energy market will continue until 2026, as the peaks of the global energy crisis have not yet arrived. informs Bloomberg cites its own calculations based on market data.
“Europe has suffered about $1 trillion from the sharp rise in energy prices. <….> Even with the rollout of new liquefied natural gas import capacity, the market is expected to remain tight until 2026, when additional capacity is available from the US to Qatar.
European governments have already provided more than $700 billion in financial aid to crisis-affected businesses and ordinary energy consumers, but a recession in 2023 may require even more effort from EU officials, said Martin Devenisch, director of the consulting firm. S-RM.
“If you add up everything like financial aid, subsidies, that’s an unbelievably big amount of money. However, it will be much more difficult for governments (EU countries – socialbites.ca) to deal with this crisis next year, ”complained Devenish.
5 December analysts of the financial company S&P Global sent Manufacturing activity in the eurozone fell once more in the last five months in November, according to the report. This indicates that a recession in the region is imminent.