ECB Economic Bulletin: Gas supply shock would cut value of Europe's economy
In an Economic Bulletin article published on Tuesday, the European Central Bank (ECB) warned against the negative impact of any gas supply disruption on the Eurozone’s economic growth.
Key takeaways
“Expect high energy prices would reduce eurozone economic output by around 0.2% this year, compared with baseline levels of GDP, with the biggest impact in the first quarter.”
“Negative economic impacts would be aggravated if the bloc loses some of its gas supply.”
“The direct and indirect impact of a hypothetical 10% gas rationing shock on the corporate sector is estimated to reduce euro area gross value added by about 0.7%,”
“Austria and Slovakia would take the biggest hit.”
Market reaction
EUR/USD is trading close to daily highs of 1.1350 amid a renewed risk-on wave, adding 0.34% on the day.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
