Economics
War and Inflation Deal Europe $73.6 Billion Loss in Consumption
- Allianz sees consumer-spending drop in second, fourth quarters
- Lost private spending equates to about 500 euros per household
Shoppers pass stores in Bordeaux, France, on May 27.
Photographer: Cyril Marcilhacy/BloombergThis article is for subscribers only.
European consumers spooked by the war in Ukraine and record inflation are likely to drop out as key drivers of the region’s post-pandemic recovery, dealing a blow to the economy this year, according to a survey by Allianz SE.
Based on deteriorating consumer confidence, economists led by Ana Boata see lost private spending in the 19-nation euro area in 2022 adding up to 70 billion euros ($73.6 billion) -- the equivalent of about 500 euros per household. The estimate is based on a May survey of more than 2,500 people in Germany, France and Italy, the region’s three largest economies.