The war in Ukraine is leading to rising prices and weakening Europe’s energy security, says the IMF

The war in Ukraine is weakening Europe’s energy security and leading to a continuous increase in prices.

This is stated in a report by the International Monetary Fund (IMF) on energy and climate.

“The military actions in Ukraine could lead to a permanent increase in energy prices in Europe, which will weaken energy security due to the rising share of energy expenditures in GDP, thereby making economic activity more sensitive to any disruptions in energy supply,” the report says.

The document also suggests that the European Union will be able to completely stop importing Russian energy resources by 2030.

Earlier, the IMF reported how the cost of living in Europe would rise due to the energy crisis caused by the war in Ukraine.

Meanwhile, in Germany, it is predicted that German industry is unlikely to recover to the level that existed before the war in Ukraine. This is due to the fact that increased prices for imported liquefied natural gas have put Europe’s largest economy at a disadvantage.