What the Energy Crunch Means for Euro-Area Growth

Europe stands alone when it comes to how much more consumers will have to pay for natural gas. It’s already squeezing household incomes as winter hardens, leaving consumers with less to spend on other things. Bloomberg Economics’ in-house model of the euro-area economy points to a hit from higher energy prices of as much as 1% of GDP, with the impact lasting well into this year.

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