The narrative surrounding Europe's energy crisis has shifted in recent weeks as warmer-than-normal winter temperatures have reduced heating demand, gas stocks have remained at high levels and gas prices have fallen sharply. This will help to improve external positions (particularly in Hungary) and lower inflation by 0.3-0.5%-pts in Central and Eastern Europe this year. But for Russia, lower gas prices will further weaken its resilience to sanctions.
Drop-Ins – The World In 2023 (10-11 January): Will 2023 be another rollercoaster year for economies and markets? Join our senior economists for these special briefings on 10th and 11th January to find out what to expect in the coming 12 months. Register now.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.