Adrian explained to the Rhenish Post that this means that the GDP per capita in Europe’s largest economy will be about €2,000 less than it would have been without the war.
Industry constitutes a larger share in the German economy compared to many other countries, and the sector consumes most of its energy-intensive parts, which means that German companies have been greatly affected by high energy prices, which last year recorded the highest levels in Europe.
According to a study conducted by Allianz Trade last month, the industrial sector will pay about 40 percent more for energy in 2023 compared to what it paid in 2021 before the crisis caused by the outbreak of the Russian-Ukrainian war on February 24 last year.
“Therefore, the future growth prospects in 2023 and 2024 are lower than many other countries,” Adrian said, adding that this was the case last year as well.
Energy prices in Germany, which for decades depended on relatively cheap Russian pipeline gas, are high compared to the United States, which has its own natural gas reserves, while France has ample nuclear energy.
“The price of gas is three to five times higher than in the United States,” Adrien said, adding that electricity is four times more expensive than in France.
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