CEE economies hardest hit by Europe’s energy crisis

In this Update, we analyse the impact of surging energy prices in Europe and show that the Central and Eastern European (CEE) economies are the most vulnerable. The share of household disposable income spent on energy could double to more than 10% and a large number of manufacturing firms are likely to become unprofitable. Government support will cushion the blow and consumers will find energy savings. But it’s clear that the price shock is on such a scale that deep recessions are now inevitable.