Energy crises in Europe & China are spilling into economic forecasts, global markets, supply chains, & beyond.
Who is affected🤷: For weeks now, Europe’s been facing soaring natural gas and power prices, while China is facing electricity shortages that are shutting down factories.
Europe🌍: Gas & diesel shortages in the UK have caused major industries to temporarily close or pause production after significant disruptions to supply chains. Energy retailers are collapsing. Gas stations are being shut down, & therefore gas costs are soaring, leading to cuts in the output of fertilizers and other goods.
China🌏: Coal prices increased on the back of increased demand by China’s power-hungry factories. However, Chinese regulators have not allowed power companies to charge higher rates as it tries to reduce power consumption. According to Reuters, “China’s power crunch dwarfs Evergrande’s troubles in investors’ eyes”.