In the Eurozone, inflation for 2021 has been stated at 5.1%, with most likely increasing future inflation due to a 9.5 Billion USD trade deficit which was paid with printed money, because the balance sheet and the liabilities of the ECB have increased over 2021.
While international investment is rising in places like China, the Eurozone has seen international investment fall by $296.2 billion. Although it wasn't as bad as the US, which saw a $16.07 trillion drop in international investment. Europe should seem worried about its international investments, yet a chart shows that divergence has steadily narrowed and pre-pandemic import balances were consistently in surplus. In conclusion, Europe is in an economic state in which the best thing to do is to monitor and constrain their inflation.
In response to the Ukraine Conflict Europe has put various sanctions in place and plans on reducing its dependence on Russian gas and oil by 67%. We expect that to have economic impacts, should the european government not find new and alternative sources of energy. That could have further price increases not just in oil and gas but also in e1uropean oil and gas companies.
Until now a lot of european finance ministers have acted for their countries financial benefit. Through the Ukraine-Crisis leaders have now worked very connected and unified against russia, which could build a new age of more unified action in the ECB and in finance and economic decisionmaking.
Bearing all that in mind Midas Financials & Co has concluded that the european Economy has bright potential in the future though russian sanktions and the covid crisis have put restraints on the european Economy. In the stock market european dividend paying companies have a huge upside potential with relatively low downside risk, due to fair valueation and non bubble inflated stockprices.
