Jakarta –
An extreme heat wave hits mainland Europe. This extreme weather is said to be driving the European economy into a recession.
Carsten Brzeski, a top economist at ING Bank of the Netherlands said extreme weather could add to a long list of factors weakening the European economy. The dry summer and scorching weather called Brzeski has added to the headache for businesses across Europe.
“This (extreme weather) adds to fears of a weak European economy,” Brzeski said.
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Today, the water level along Germany’s Rhine river has shrunk. In fact, this river became important as a route for transporting chemicals, coal and grain. If the river shrinks, it is feared that shipments will be disrupted and could threaten the supply chain further.
Meanwhile, warmer water temperatures in France have hampered the operation of some nuclear power plants amid other maintenance issues.
Then, in northern Italy farmers experienced the worst drought in 70 years. This affects crop production from soybeans to parmesan.
These phenomena are believed to increase inflation, because Europe is currently struggling to cope with rising food and fuel prices. This phenomenon triggered by extreme weather is said to only provide new problems for Europe.
The economic condition of the blue continent is already faced with various threats. These range from record inflation exacerbated by Russia’s war in Ukraine, to the weakening euro exchange rate and making it more expensive for businesses to import the goods they need.
Not to mention, the crisis in Italy is feared to have a major impact on the region’s economy. Italy, the bloc’s third-largest economy, has been embroiled in a political crisis after the ouster of its prime minister.
(hal/hns)
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