Europe is more vulnerable to a new rise in energy prices than other major economies, especially the US, and in the event of a further sudden increase in energy costs, the most affected European economies would be Romania, Hungary and the Czech Republic, according to the EY European Economic Outlook analysis.

The prolongation of the period of high energy prices and inflation, coupled with the tightening of monetary policy, will continue to affect household consumption and economic growth in Europe, Agerpres reported.

In a simplified scenario, which takes into account the calming of the recent turmoil in the financial sector, GDP growth in the euro area is expected to fall from 3.5% in 2022 to 0.7% this year and then reach 1.3% in 2024 and 1.9% in 2025.

iulian@romania-insider.com

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