Skip to main content

Europe’s energy crisis losing its bite

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

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access