IMF: Fragmentation of oil and gas markets may affect inflation and Europe’s GDP

Fragmentation of oil and gas markets may have a significant negative impact on inflation and GDP in Europe, according to a report of the International Monetary Fund (IMF), Report informs.

Europe may experience significant impacts on inflation (of 100 basis points or more) and GDP, with the impact driven primarily by fragmentation of oil and gas markets, reads the document.

Meanwhile, trade fragmentation across all seven major commodities, where the fund includes crude oil, coal, natural gas, copper, nickel, cobalt and lithium, would be associated with global GDP losses of about 0.3%. These goods, according to IMF estimates, account for about 70% of global commodity trade.