What war has done to Europe’s economy
After the energy crisis comes low growth and stubborn inflation
After three years of pandemic shutdowns, reopening booms, war, clogged supply chains and nascent inflation, European policymakers thought that 2023 would be the year the old continent returned to a new normal of decent growth and sub-2% inflation. Europe’s economy is indeed settling down. Unfortunately, though, the new normal is considerably uglier than economists had expected.
This article appeared in the Finance & economics section of the print edition under the headline “Wartime economics”
Finance & economics February 25th 2023
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