A Russian natural gas embargo could cause deep recessions in Hungary, Slovakia, the Czech Republic and Italy unless countries can cooperate more to share alternative energy sources, the International Monetary Fund (IMF) said on Tuesday.
IMF researchers said in a blog post that some countries could experience shortages of up to 40% of their normal gas consumption in the event of a complete blockade on Russian gas.
Hungary would be the hardest hit economically by such an embargo, with a reduction of more than 6% of its Gross Domestic Product (GDP), while Slovakia, the Czech Republic and Italy could see their GDP reduced by 5% if alternative gas sources, including liquefied natural gas, are prevented from flowing freely to where they are needed.
Under a more optimistic scenario of full market integration, the economic damage would be reduced, with Hungary seeing a GDP decrease of more than 3%, Slovakia and Italy suffering a negative impact of more than 2% and the Czech Republic’s GDP falling less. of 2%.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
