HomeWorldFalling oil and gas...

Falling oil and gas prices boost economic growth in the West – media

Falling energy prices help explain this year’s unexpectedly strong economic performance in the US and Europe.

Falling oil and natural gas prices are dampening household spending, boosting confidence, easing pressure on government budgets and could boost eurozone output by about 1.5%, according to The Wall Street Journal .

Falling energy prices help explain this year’s unexpectedly strong economic performance in the US and Europe. Supply chain managers on both sides of the Atlantic are now more optimistic than in recent months, according to business surveys by S&P Global, seen as a reliable indicator of future growth.

The gains for households, businesses and governments will also offset rising borrowing costs as central banks raise interest rates to cool historically high inflation.

The price of a barrel of oil has fallen by more than a third since the middle of last year, to around $77 from $121, below pre-war levels, as markets adjusted to a Western embargo on Russian supplies and oil was released from emergency reserves.

In Europe, underlying wholesale natural gas prices have fallen nearly 90% since last summer, hitting their lowest level since 2021 thanks to warm weather, austerity and rising imports.

Lower natural gas prices mean significant cost savings for Europe, equivalent to around 3.5% of this year’s gross domestic product for Italy and around 2% of GDP for Germany, Portugal and Spain , according to Capital Economics.

Overall, Capital Economics and Berenberg Bank estimate that the energy stimulus could boost eurozone output by about 1.5%, roughly equivalent to an annual increase.

Consumer confidence has risen significantly on both sides of the Atlantic in recent months, reversing last year’s decline. This could mean that households spend more of the money they saved during the pandemic, which would fuel further growth, economists said.

Recall that the price of natural gas in Europe in exchange trading fell below $450 per 1,000 cubic meters. m for the first time since July 2021. Gas is becoming cheaper despite the cold snap in early spring. As a result, withdrawals from European UGS facilities are at historic highs.

Source: korrespondent

- A word from our sponsors -

Most Popular

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More from Author

- A word from our sponsors -

Read Now

5 K-Pop songs that were inspired by books and movies

With Brazilian reference included; Meet 5 songs by K-Pop artists who had books, animations and movies like InspirationThat art inspires thousands of people around the world everyone knows. She, who with her particular meanings and detailed details, is able to sensitize and become a model for new...

What are the movies that make up the age of Disney’s shadows?

Find out what are the films released by Disney that were marked by the characteristics of the studio's shadows ageDo you know what was the age of Disney's shadows? Also called the Dark Era, it was obscure, the darkness and was bronze, this is the period marked...

Zelensky Obel on Trump’s drugs with Putin: this Russia is the water world

President Volodymyr Zelensky reacted to the conversation of Donald Trump with Vladimir Putin. .in_text_content_22 {width: 300px; Height: 600px; } @Media (min-width: 600px) {.in_text_content_22 {width: 580px; Height: 400px; }} .Adsbygoogle {Touch-Action: Manipulation; } Many spoke with Russia and at different levels. No...