Why has Europe's economy plummeted and inflation reached the point where using natural gas has become a luxury?

Why did the European economy plummet? Why did the economic recovery slow down and not improve? First of all, the important point is the conflict between the Russian and Ukrainian war on the economy. Most of the countries in NATO are located in Europe. Those who support Ukraine have provided armed assistance, causing a large amount of European economy to be lost in the Russian-Ukrainian battlefield.

Secondly, the internal differentiation of the service industry recovery is intensifying. Since Europe supported Ukraine's armed assistance, European economic residents' consumption and investment are significantly lower than historical levels. From the perspective of the entire European economy and the euro physique, the economy of industrial countries in northern Europe is far lower than that of service countries in southern Europe.

Judging from the recent euro savings rate data, Europe's inflation rate is higher than that of the United States. Why is the overall economy of Europe far higher than that of the United States, but the consumption gap between Europe and the United States is so far apart? Although the euro is the economy with the highest exchange rate, it is more expensive than the overall consumption of the United States. Europe belongs to high exchange rate and high consumption, while the US dollar belongs to high exchange rate and low consumption. The prices of American residents are relatively low, but there are signs of inflation in Europe. The high inflation rate has reduced the consumption of European residents. Since Europe has supported Ukraine, prices have been sky-high, and the prices of various products have been significantly raised.

Germany, as the "locomotive" of European industry, has also been greatly affected and was once called the tail of the entire Europe! European industry has become sluggish with the decline of German industry. With the decline of the overall European economy, prices have continued to rise, resulting in a situation of high production and low consumption. In addition, Germany's military industry fully supports Ukraine, and heavy industry produces a large number of weapons and equipment, while Ukraine does not have a lot of funds to pay for its expenses, causing Germany's immeasurable economic losses.

The only way to restore the European economic system is not to support NATO's military alone, strengthen industrial productivity, and thus deal with the characteristics of Europe's loss of industrial productivity and the high price increases. In addition, the European Central Bank has made a large interest rate cut to deal with the economic inflation in Europe.

According to statistics, since the outbreak of the Russian-Ukrainian war, the European economy has been greatly affected. The real GDP of the euro has fallen by 1.5% year-on-year on a quarter-on-quarter basis. The GDP of residents' consumption, investment, and commodity trade is far lower than the interest rate before the outbreak of the Russian-Ukrainian war. This is also the fundamental reason why the European economic GDP has been hovering on the edge of recession for five consecutive quarters on a quarter-on-quarter basis.

The EU has been affected by Russian sanctions, and the overall price of natural gas has risen by 75%. Although the EU has made some adjustments to reduce a lot of costs, the price of basic necessities is still high for consumers. The price of sliced ​​bread, a staple food in the UK, has risen by 28% to £1.39, the price of pasta in Italy has risen by 17%, and the price of cheese in Germany has risen by as much as 40%. The price of European food continues to rise, and the continued food inflation has caused many low-income European residents to complain.

EU officials do not care about the lives of residents and blindly support Ukraine, which has damaged the European economy. Under this circumstance, if they do not reach a consensus with Russia as soon as possible, the ECB's interest rate cut will be of no avail. The sanctions imposed by Russia have led to a decline in residents' living standards, and the prices of various products remain high. Inflation has seriously affected residents' normal lives. EU officials should immediately coordinate to solve Russia's natural problems and let European residents have a warm winter.