(Bloomberg) -- Welcome to Tuesday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

  • U.K Chancellor Rishi Sunak is on track for a windfall of around 10 billion pounds ($13.5 billion) this financial year as borrowing figures for the first nine months came in well below official forecasts, despite a sharp rise in debt interest costs
    • Bank of England officials have largely decided to keep quiet in the run-up to February’s crunch meeting, allowing expectations to solidify for another interest rate increase
    • British workers will need pay rises of 8% on average this year to offset the living standards squeeze from higher energy bills, tax rises and broader inflation if the government does nothing to help
  • Hungary will probably raise its base interest rate for an eighth consecutive month after inflation failed to slow in line with the central bank’s forecasts
    • It’s also rate decision day in Nigeria
  • Bulgaria, the European Union’s poorest member state, is shrinking -- and fast: The Balkan nation of 6.5 million has already lost more than a quarter of its population since it peaked at the end of communist rule three decades ago
  • Singapore unexpectedly tightened monetary policy to join the global fight against accelerating inflation, sending its currency to the strongest since October
  • China’s provincial authorities are expecting their economies to expand at least 5% this year, providing clues on where the national government will set its growth target in coming months
  • Finally, here’s what the energy crunch means for euro-area growth

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