Economy in Focus #15 - Beyond Inflation: Lingering Strains on Europe’s Households

From lingering price pressures to fragile household finances, Europe’s recovery remains uneven. In this edition of Economy in Focus, Senior Economist Anna Zabrodzka-Averianov examines the key risks shaping the region’s outlook and what they mean for consumers, businesses, and policymakers. The 15th edition was published in September 2025.

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Persistent price pressures

Despite moderating inflation, the cost of essentials like food and energy remains far above pre-crisis levels, eroding household purchasing power and straining budgets.

Late payments slowing growth

Delayed payments continue to hurt both households and businesses, tightening cash flow and threatening Europe’s fragile economic recovery.

Limits of government relief

Short-term subsidies and support measures have softened the blow but failed to deliver lasting financial stability for vulnerable groups.

Anna Zabrodzka-Averianov, Senior Economist at Intrum

Comment from Intrum's Senior Economist:

"Europe’s recovery remains fragile and uneven. While conditions are improving, high costs and late payments continue to weigh on households and businesses. Even moderate disruptions could tip parts of the economy back into stress.”

Energy costs keep households under pressure

Although wholesale energy prices have stabilised, retail prices remain high across much of Europe. The removal of subsidies and uneven pass-through of cost reductions are leaving many households exposed, with lower-income families spending a disproportionate share of their income on energy. Rising geopolitical risks threaten to push prices higher again.

Fragile stability masks deeper vulnerabilities

Europe’s economy is showing early signs of recovery, but beneath the surface, financial resilience remains weak. High costs, late payments, and uneven wage growth continue to strain both households and businesses, leaving many on a knife-edge and vulnerable to even moderate economic shocks.

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Previous editions of Economy in Focus:

Economy in Focus #14 - Bracing for impact: Europe in a new trade era

As the global economic order shifts once again, businesses across Europe face a renewed wave of uncertainty. This edition of Economy in Focus explores the growing implications of escalating trade tensions, geopolitical instability, and slowing economic momentum—set against the backdrop of Donald Trump’s return to the US presidency and a resurgence of protectionist tariffs.

Economy in Focus #13 - 2025 outlook: Triumph or turmoil?

What key trends is shaping the macroeconomic landscape in Europe as we move into 2025? From central banks managing interest rate cuts to governments implementing fiscal tightening and the increasing influence of geopolitical uncertainty, the year ahead presents a complex economic picture. The potential for both growth and disruption highlights the importance of strategic planning in a rapidly evolving global economy.

Economy in Focus #12 - 2024 year-in-review: The tides are turning

Intrum’s Senior Economist, Anna Zabrodzka-Averianov, reflects on the key trends that have shaped the macroeconomic landscape in Europe throughout 2024. From central banks navigating interest rate cuts to an uneven economic recovery and the recalibration of artificial intelligence (AI) investments, this year has underscored the complexities of restoring stability in a rapidly evolving world.

Economy in Focus #11 - The state of corporate and household credit in the EU

In the latest edition of Economy in Focus, Intrum’s Senior Economist, Anna Zabrodzka-Averianov, delivers key insights into the pressing issues surrounding corporate and household indebtedness in the EU.

Economy in Focus #10 - AI’s impact on macroeconomy

In the 10th edition of Economy in Focus, discover how Generative AI is revolutionising productivity and reshaping global economic landscapes. This in-depth report explores the transformative potential of AI technologies, their impact on markets, and the challenges they bring. Published in June 2024.

Economy in Focus #9 - Household savings and investments in a new age

In the 9th edition of Economy in Focus, Intrum’s Senior Economist, Anna Zabrodzka-Averianov, explores how European household savings and investment patterns are shifting in a post-pandemic world. This report was published in April 2024.

Economy in Focus # 8 - 2024 outlook: What to expect and prepare for

In the 8th edition of Economy in Focus, Intrum’s Senior Economist, Anna Zabrodzka-Averianov, offers a detailed outlook on the economic challenges and opportunities expected in 2024. This report, published in January 2024, examines inflation, credit tightening, and recovery scenarios.

Economy in Focus #7 - 2023 in Review – An economic potpourri

In the 7th edition of Economy in Focus, Intrum’s Senior Economist, Anna Zabrodzka-Averianov, reviews the economic challenges and developments of 2023. The report highlights inflation, property market declines, and regulatory changes. Published in December 2023.

Economy in Focus #6 - NPLs: A Decade-Long European Headache

In the 6th edition of Economy in Focus, Intrum’s Senior Economist, Anna Zabrodzka-Averianov, delves into the decade-long challenge of non-performing loans (NPLs) across Europe. This report explores the impacts of NPLs on the European economy and the strategies for addressing them. Published in September 2023.

Economy in Focus #5 – Four key challenges that European companies face

In the 5th edition of Economy in Focus, Intrum’s Senior Economist, Anna Zabrodzka-Averianov, examines the four key challenges that European companies face, including revenue disruptions, inflation fears, wage-setting struggles, and cost-cutting measures. Published in June 2023.

Economy in Focus #4 – Employment remains strong in Europe

In the 4th edition of Economy in Focus, Intrum’s Senior Economist, Anna Zabrodzka-Averianov, discusses Europe’s resilient labour market amidst economic challenges. The report highlights stable employment, falling real wages, and rising consumer confidence. Published in April 2023.

Economy in Focus #3 – Downturn on the housing market

In the 3rd edition of Economy in Focus, Intrum’s Senior Economist, Anna Zabrodzka-Averianov, provides insights into the downturn in Europe’s housing market, with a particular focus on the impact of rising interest rates on household debt. Published in February 2023.

Economy in Focus #2 – Generation X worst off

In the 2nd edition of Economy in Focus, Intrum’s Senior Economist, Anna Zabrodzka-Averianov, explores the record-low consumer confidence in Europe, the impact of rising inflation, and how Generation X is most affected. Published in December 2022.

Economy in Focus #1 – Inflation reaches highest level in decades

In the 1st edition of Economy in Focus, Intrum’s Senior Economist, Anna Zabrodzka-Averianov, discusses the record-high inflation levels across Europe, the sharp rise in energy prices, and the impact on consumer confidence. Published in September 2022.

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