Germany will stare at recession if Russia stops its gas deliveries, warn think tanks

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Russia economy
Russian construction worker at a ceremony marking the start of the Nord Stream pipeline, St. Petersburg, Russia (Source: AFP)

Jakarta, IO – Germany’s economy will be adversely affected if Russia stops its gas deliveries amidst its offensive against Ukraine, which has become a flashpoint in its relationships with the west.

A joint report from a number of German think-tanks on Wednesday (13/4), showed that Germany risks losing up to 220 billion euros or a staggering Rp3,442 trillion between 2022 and 2023, if Russia’s gas supplies were to be disrupted.

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The report was published by the German Institute for Economic Research (DIW Berlin), the ifo Institute (Munich), the Kiel Institute for the World Economy (IfW Kiel), the Halle Institute for Economic Research (IWH), and RWI (Esen).

It is projected that a disruption to Russia’s natural gas supply could affect more than 6.5% of Germany’s annual economic output. The German economy is going through a rough patch and is facing the highest inflation rate in decades.