Dollar and euro parity: what can consumers expect?

The parity of the euro and the dollar, which has been established for the first time in the last 20 years, is causing concern among eurozone governments and consumers.

After all, the equal value of the European and American currencies means an increase in prices for a number of key imported goods.

Most analysts agree that the European economy has fallen on hard times.

Mikael Bauer, professor of economics at the University of Hamburg:

"A weak euro could trigger an already high inflation. Feedback effects are not ruled out. This may worsen the situation somewhat. We import a lot of oil, a lot of goods from Europe. Its economy is largely dependent on these imports, and it is becoming more expensive."

But American tourists who come to rest in Europe are actively benefiting from the situation by spending dollars in local shops and restaurants.

"Oh, that's great, parity makes it easier for us. Now with our money we can buy and do a lot more while traveling," says a vacationer from the US.

“It’s cheaper to come here and buy something. It’s more profitable to spend money here than in the USA. And you can buy everything the same. It comes out cheaper along with the trip,” another American tourist echoes him.

The war in Ukraine, inflation, disruptions in the global food supply chain, and now a weak euro and a strong dollar are adding to the risks to the global economy as a whole.

Monday, 28 November 2022