In 2020, euro zone households spent an average of €1,200 on electricity and gas. This year was meant to see consumer spending drive growth after two years of Covid-19 lockdowns and layoffs. The European Central Bank said in December it expected the euro zone economy to expand by 4.2% in 2022, driven by a 5.9% surge in private consumption. "This would also be in line with previous episodes of higher energy prices, in which almost all countries saw other expenditures dropping," ING's economist Carsten Brzeski said. But these will offset only about a quarter of the 54% increase in energy bills from 2020, according to BofA estimates.
