Rising Energy Costs and Interest Rates Threaten European Growth, Economist Says

Rising energy prices and higher interest rates threaten economic growth in Europe, according to Dr. Mohsen El-Salamouni, a professor of economics at the University of London.

El-Salamouni said elevated inflation across Europe reflects an economic crisis more complex than a problem that can be addressed simply by raising interest rates.

His assessment highlights the challenge of tackling price pressures while protecting economic activity. Higher borrowing costs can restrain demand, but they also risk slowing growth.

Energy costs add another source of pressure on the economy. The combination underscores the difficulty facing European policymakers as they seek to bring inflation under control without further weakening growth.