The International Monetary Fund estimates that Europe will face record gas and power prices in 2023. At the same time, finance officials from the department emphasize that the EU countries will be able to get through the 2022-2023 winter thanks to sufficient reserves in storage.
According to IMF analysts, the coming year is likely to be extremely challenging for Europe. The fund warns that sky-high natural gas and power prices may inflict severe economic pain on the region.
Europe aims to refill its strategic gas reserves by spring 2023, but the experts are not confident in a smooth outcome. Halted gas supplies from Russia may trigger a surge in energy prices. As a result, in 2023 the market will return to record-high natural gas and power prices, they tip off.
By mid-September 2022, Russian gas exports to Europe dropped by 80% relative to 2021, the IMF notes. At the same time, Russia cut off supply to Bulgaria, Denmark, Finland, Germany, Lithuania, the Netherlands, and Poland. Against this background, the cost of living for households across the continent is expected to grow by 7% this year and 9% in 2023, the analysts believe.
