GLOBALink | EU's economic outlook dimmed by inflation, energy crisis-Xinhua

GLOBALink | EU's economic outlook dimmed by inflation, energy crisis

Source: Xinhua

Editor: huaxia

2022-08-16 19:45:02

BRUSSELS, Aug. 16 (Xinhua) -- The inflations in Europe have been constantly hitting new highs for quite a while, leading to weak consumption. In face of a potential energy supply shortage, the European Union's voluntary energy cut plans are also questioned.

Under the attack by inflation and the energy crisis, the economic outlook in Europe has become increasingly bleak with a lingering risk of recession.

Under the combined effect of several negative factors including the backlash of sanctions and the spillover effect of the United States' aggressive interest rate hikes, the ramifications of the surge in energy prices are seen everywhere in Europe.

One direct impact on the European residents is that they have to face soaring cost of living and declining real purchasing power, which result in their reluctance to consume.

Produced by Xinhua Global Service


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