IMF: Europe's energy crisis will raise living costs by 7%

Baghdad-INA  

International Monetary Fund expectations on the economic situation in Europe revealed that due to the energy crisis, living expenses in European countries will rise by 7% in 2022, and 9% in the future.

According to the report: "Higher energy prices will lead to an increase of 7% in the living expenses of European households in 2022 and 9% in 2023, compared to 2021."

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

IMF experts stress that, "many European companies have already restricted or plan to restrict the release of goods in sectors such as fertilizers, glass, steel and aluminum, which is likely to lead to additional price increases in value."

They pointed out that "the import of natural gas from Russia, until recently, the largest supplier of energy resources to the European Union, has practically stopped", which "pushig the continent into an energy crisis."

"The announcement by the 7^th Group in September of its intention to try to cap Russian oil prices, sparked "a further division of energy markets." According to the report.