The Ukraine war has also slashed Germany’s economic growth projections from 4.8% to only 2.7% for 2022, and 3.1% for 2023.
“The shock waves from the war in Ukraine are weighing on economic activity on both the supply side and the demand side,” said Stefan Kooths, vice president of the Kiel Institute for the World Economy.
“Increasing prices of critical energy commodities following the Russian invasion further fuel the upward pressure on prices.”
Furthermore, he said, if the energy supply stops, the German economy can plunge to 1.9% this year. (at)