Russia-Ukraine war: European economy .. chaos

Brussels: Tensions between Ukraine and Russia have plagued European countries. Prices in 19 countries using the euro as a common currency hit another record high in April, as fuel prices soared with the effects of the war. Inflation was 7.4 percent in March, up from 7.5 percent in April. This marks the sixth consecutive month that the eurozone has set a new record level. There is concern that this could have a serious impact on the chances of surviving the coronavirus epidemic. There are over 34.3 crore people in eurozone countries. Observers attribute the rise in prices in the eurozone to factors that have pushed inflation to record levels in the United States.

Fuel prices up 38%

According to Eurostat, fuel prices have risen by 38 percent since Russia attacked Ukraine. Prices of both products rose sharply due to concerns that the war could disrupt oil and gas supplies from Russia, one of the world's largest oil exporters. Oil exporting countries, including Russia and their allies

Countries... The problem is further complicated by the fact that Achi Tuchi is dealing with the issue of increasing production. Interruptions in the supply of raw materials and spare parts further exacerbate this. Inflation is hitting the people and governments hard. There is serious concern over this in the future.

Read: "This is not correct. Russia is blocking them and blackmailing them."

Front hole .. back hole...

The situation in Europe, which relied on Russia for its energy needs, is now like a pit behind the front line. Russia, which has invaded Ukraine, will inevitably announce rival sanctions on political grounds. But there is no condition to follow them. They are not in a position to suspend energy imports from Russia for heating, electricity, and energy needs in their respective countries. Tej Parikh, director of the Fitch Ratings Economics team, believes that the Russia-Ukraine war has become a serious obstacle to the eurozone's economic recovery. Pressure is mounting on the European Central Bank to raise interest rates to curb rising inflation.

But some opinion raising rates to control prices will hamper the economy's recovery from the blows of Kovid, energy shortages, and war. These are further exacerbated by the slowdown in economic growth from 0.3% to 0.2% in the first quarter of 2021, with government sanctions already in place to curb the spread of Omicron. The effects of the war, which began in the middle of the first quarter (February 24), will be felt in the coming months, analysts said. They noted that the eurozone's gross domestic product (GDP) is likely to shrink in the second quarter, with rising inflation and the outcome of the war in Ukraine. Given the rise in inflation in April, the ECB is likely to raise interest rates in July.