Economy

Ole Berg-Rusten / NTB  

 

The energy crisis in Europe  

European gas prices pushed up by strike in Australia  

 

The price of fossil gas in Europe has increased in the last three trading days due to a strike affecting Australia's gas exports, writes TT.  

 

The strike, which began last week, affects Chevron's Gorgon and Wheatstone plants in Australia, which last year accounted for 7 percent of the world's liquefied natural gas (LNG). 

 

At 10 a.m. on Monday, a futures contract traded for 36.60 euros per megawatt hour – a rise of 6 percent. 

 

 

ECB in Frankfurt. Michael Probst / AP  

 

ECB vs inflation  

New forecast: High inflation lowers growth in Europe  

 

The EU lowers its inflation outlook this year by two tenths to 5.6 percent. However, the figure for next year is raised by one tenth to 2.9 percent. This is shown in the Commission's summer forecast. 

 

- The EU avoided recession last winter. It is no small feat considering the size of the shocks the economy was exposed to, says EU Economic Commissioner Paolo Gentiloni. 

 

However, several headwinds this year have led to "weaker momentum in growth", he adds. The high inflation causes the EU to lower its GDP forecast. 

 

The Commission now believes that GDP will rise by 0.8 percent this year, down from 1.1 percent in the May forecast. In 2024, GDP is expected to increase by 1.3 percent compared to the previous 1.6 percent. 

 

Factory at Cowley, near Oxford. TOLGA AKMEN / AFP 

 

The development of electric cars 

BMW bets big on British Mini – praised by Sunak 

 

German automotive giant BMW is to invest several million pounds in its Mini production in the UK. The British government announced this on Monday, according to international media.  

 

The investment is expected to secure 4,000 jobs and promote the British economy. The goal is for all Mini cars to be electric by 2030. 

 

- BMW's investment is a shining example of how Britain is the best place to build the cars of the future, says Prime Minister Rishi Sunak.  

 

 

Johan Nilsson/TT

   

Danish and Norwegian inflation declined during the summer 

 

Consumer prices in Denmark rose 2.4 percent in August compared to the same month last year. However, a decline was seen from July, when the CPI was at 3.1 percent. That's what TT and Direkt write. 

 

In neighboring Norway, inflation was measured at 4.8 percent on an annual basis in August, down from 5.4 percent in July. 

 

Lower electricity prices contributed to subdued inflationary pressure, according to the Norwegian statistics agency SSB.  

 

The Swedish inflation figures for August will now be released on Thursday.  

 

The village of Ouargane near Marrakech. Mosa'ab Elshamy / AP 

 

The earthquake in Morocco  

The disaster hits hard at the country's lifeblood: Tourism  

 

The earthquake in Morocco is expected to weigh on the country's economy more than previous estimates, writes the Wall Street Journal. Losses of up to 8 percent of GDP are now predicted, with the setback estimated at $1-10 billion, according to the US Geological Survey.  

 

Above all, tourism is expected to suffer. The disaster happened at the same time as the country enters the high season at the end of September. 

 

- It will affect the country's economy very negatively, because Morocco really lives on its tourism, says Redouane Ouadi, founder of the tour operator Journey Morocco.  

 

Over 2,100 people have so far been confirmed dead and even more injured after the earthquake that struck south of Marrakech, on the night of Saturday.