Azernews.Az

Thursday March 28 2024

How higher oil prices affect European economy?

14 November 2018 12:58 (UTC+04:00)
How higher oil prices affect European economy?

By Trend

Higher oil prices have dampened incomes in Europe, the International Monetary Fund (IMF) in Europe's Economic Outlook in Six Charts.

"Over the last year, energy prices, including that of oil, have climbed. Commodity prices have increased 7 percent since the spring of 2018, while oil prices climbed to around $80 a barrel in September 2018," said the report.

As a result, real disposable incomes fell, on average, by 0.5 percentage points of GDP in most of Europe, said the organizations, adding that oil producers, Norway and Russia, however, benefited from these developments.

IMF say that Europe has seen strong growth over the past couple of years as many risks did not materialize.

"The region continues to enjoy respectable growth fueled by domestic demand, supported by high employment and wages. Still, the economy expanded at a slower pace than originally predicted," said the report.

IMF predicts that the region’s economy will slow from 2.8 percent in 2017, to 2.3 percent in 2018, and 1.9 percent in 2019.

Compared with the previous forecast by the International Monetary Fund, growth has been revised downward in about half of the countries in Europe.

The downward revisions reflect weaker external demand and higher energy prices. Nevertheless, growth is expected to remain above potential in most countries in the region, according to the report.

---

Follow us on Twitter @AzerNewsAz

Loading...
Latest See more