(VOVWORLD) - A negative shock from any gas supply disruption would eat into the value of goods and services produced in the euro zone, worsening the impact of high energy prices on the bloc’s growth, the European Central Bank said on Tuesday.
 An oil refinery located at Fawley, Hampshire, England (Photo: AFP/VNA) |
Oil prices in Europe have hit a record high in the past seven years.
In an Economic Bulletin article on Tuesday, the ECB said it expects high energy prices will reduce euro zone economic output by 0.2% this year, with the biggest impact in the first quarter.
Over 90% of the gas used in the euro zone is imported, the ECB said, meaning negative economic impacts will be aggravated if the bloc loses some of its gas supply.
Austria and Slovakia will take the biggest hit, the ECB said, while among industrial sectors, basic metals will likely suffer the most.