shine trader live reports:
Jita gopinat, chief economist of the International Monetary Fund (IMF), believes that the rise in energy prices has indeed put great pressure on many families, but it will not lead to a crisis similar to that in the 1970s. It is expected to ease “at the end of the first quarter of 2022”.
Gopinat told AFP that the sign of global economic recovery is a strong rebound in demand. Last year, in order to control the epidemic, economic activities were paralyzed, resulting in a sharp contraction in demand. However, the long cold winter after the heat will lead to a sharp rise in energy demand and the depletion of inventories, especially the natural gas reserves in Europe.
Gopinat pointed out that “this recovery is indeed unique”. Demand is increasing, novel coronavirus pneumonia is a major worry for many industries, but the main reason is that people are worried about the infection of new crown pneumonia. She said that this shortage of materials has put pressure on prices in some parts of the world, such as Germany, the United States and Japan. The key question is to find out whether this phenomenon will continue or reverse soon.
“At present, in the winter months, energy prices will remain high and are expected to fall by the end of the first quarter and the second quarter of next year,” said the chief economist
However, gopinat acknowledged that the “major risk” is to usher in a new cold winter, which will “expand the scope of power failure, which may have a more serious impact on the world”. “The worst situation is that the severe cold in the northern hemisphere will lead to a sharp rise in energy demand. At the same time, we may not solve the problem of disrupting the production chain.” she stressed that the world may also encounter extreme weather.
It is reported that, for example, in February this year, a cold current characterized by extreme low temperature and snowstorm led to a sharp increase in power demand in the southern states of the United States. Texas, with 29 million residents, was simply unable to meet the sudden surge in power demand, and tens of thousands of families were powered off.
Reprint indicated source：Spark Global Limited information