The worldwide surge in demand for vitality might spark one other three years of market volatility and report energy plant air pollution except international locations make main adjustments to how they generate electrical energy, the world’s vitality watchdog has warned.
The Worldwide Energy Company recorded the steepest ever enhance in electrical energy demand final yr, which triggered blackouts in main economies and led to historic vitality worth highs and report emissions.
The IEA’s annual electrical energy report mentioned this might proceed for an additional three years, with serious consequences for consumers and economies except there’s a sooner structural change to the best way electrical energy is produced.
The IEA’s govt director, Fatih Birol, mentioned:
“Sharp spikes in electrical energy costs in latest instances have been inflicting hardship for a lot of households and companies around the globe and danger changing into a driver of social and political tensions,”
Full story: UK economic system again to pre-pandemic ranges in November
The UK economic system surpassed its pre-pandemic degree for the primary time in November after rising by 0.9% over the month, partly pushed by an surprising surge in early Christmas procuring.
The Office for National Statistics (ONS) mentioned a bounce in restaurant bookings and a fast turnaround in development output have been additionally behind the expansion that took the dimensions of the economic system 0.7% above its degree earlier than March 2020.
Metropolis economists had anticipated an enlargement of solely 0.4% and warned that November was more likely to show a excessive level in 2020, with the figures collected by the ONS coming shortly earlier than the Omicron variant took maintain, exacerbating employee shortages as 1000’s have been off sick, and forcing the federal government to introduce plan B restrictions. It adopted development of 0.2% in October.
The persevering with enhance in well being providers as a proportion of financial exercise was one other issue supporting the rise in GDP, the ONS mentioned.
In opposition to a backdrop of rising inflation and the specter of additional rates of interest by the Financial institution of England, enterprise teams warned the economic system remained weak.
Suren Thiru, the pinnacle of economics on the British Chambers of Commerce, mentioned:
“Stronger development in November is more likely to be adopted by a modest fall in output in December and January, as client warning to socialize and spend, and mounting employees absences sparked by Omicron and plan B restrict exercise.
“Whereas the UK economic system ought to rebound as soon as plan B measures are lifted, surging inflation and chronic provide chain disruption might imply that the UK’s financial development prospects stay below strain for a lot of 2022.”