World Insights: Three risks weigh on Europe’s growth-Xinhua
BRUSSELS, Oct. 5 (Xinhua) -- Costly energy, rising inflation and higher borrowing costs together threaten to weaken Europe's economic recovery by squeezing household spending and business investment. The euro area economy has proved more resilient than expected, prompting the European Central Bank (ECB) to raise its 2026 and 2027 growth forecasts in September. Emergency fuel releases may ease the immediate supply strain, but reliance on imports leaves Europe exposed to further disruptions. The ECB must balance inflation risks against weakening demand, while governments face pressure from rising costs as they seek to cushion the energy shock. FUEL RELIEF HAS LIMITS A coordinated release of emergency reserves may ease Europe's diesel shortage, but declining domestic refining capacity...