Russia's war against Ukraine still pressures European economy - IMF.
The negative effects of Russia's war against Ukraine continue to impact the economies of European countries. The main factors of this pressure are shock energy prices, inflation, and uncertainty of the future situation. This was reported by the head of the European Department of the IMF, Alfred Kammer.
The major shock from energy prices, caused by Russia, is the main reason for the negative dynamics in Europe. The European economy is unexpectedly recovering after this crisis.
Kammer noted that Germany suffered the most due to the energy price shock, as it has large energy production.
Another negative effect of Russia's aggression is the rise in inflation, which forces Europe to take stricter monetary measures.
The uncertainty of the duration of the war and its consequences have a direct impact on Europe's economic growth forecasts until 2025.
This uncertainty creates anxiety among consumers about future energy prices and investors who try to anticipate further events. Therefore, these problems continue to exist in Europe and have a direct impact on the development of the European economy.
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