The European Central Bank (ECB) predicts that the rise in energy prices, resulting from Russia’s war in Ukraine, will continue to weigh on consumer spending in the euro zone in the coming quarters, according to an analysis included in the ECB’s economic bulletin published this Wednesday. -Friday, 11.
“Since energy prices and uncertainty remain high, households’ real disposable income (must have declined) even more at the turn of the year, with negative effects on consumer spending and, in particular, on durable goods, despite of the likely positive impact of a new easing of supply bottlenecks”, says the ECB.
Consumption of services is also expected to weaken, despite its relative resilience to increases in energy prices, as the effects of the economic reopening gradually subside, adds the ECB.
“Overall, this points to significantly weaker consumption dynamics in the short term, in line with the December 2022 macroeconomic projections prepared by Eurosystem experts for the euro area,” concludes the ECB.
Source: CNN Brasil
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