As Ukraine war persists, European economy continues to stumble

Europe: The economic crisis in Europe seems nowhere near end as the Russian-Ukraine continues to drag on. The citizens have been struggling with an all-time high cost of living. With inflation being at its peak with a certainty of recession in the upcoming times, the economic revival seems quite a task.

  The Russian interference at Nord Stream 1 pipeline has been another reason to worry for Europeans. The interrupted gas flow from Russia is likely to hit the energy-intensive industries. The households, as well as the industries, would undergo a shortage of energy with a high probability of blackouts during winters.

 Europe has thus been high on energy conservation measures. The rising energy bills have been draining the incomes of the citizens, making subsistence far tougher. Although, the governments are looking forward to subsidising the energy bills, the retail prices of food have been posing yet another challenge. 

 Moreover, the driest weather in the longest time, accompanied by intense heatwaves, has worsened the situation. With receding water levels, hosepipe bans have been introduced across various European countries.

The United Kingdom, amidst the political instability, has a lot to go through. The Bank of England has worked upon its rates of interest to curb the inflationary circumstances as the rates continue to rise.

The retail sales have already started to stroll down. In June, retail sales volumes were down nearly 4% from a year earlier, led by a 9% drop recorded in Germany. Consumers have been skipping major purchases, and the focus has shifted to savings. Moreover. The discount chains have become the preference of the consumers instead of high-end brands.

The situation is anticipated to be worse in the scenario of further gas cut-off from Russia. Consequently, the European Union(EU) have been looking upon transition to renewable energy, which is much more resilient than Russian gas. 

As of now, Europe has been targeting on cutting off gas consumption by at least 15% for the minimum gas resource to continue to be used throughout the cold winters.