Dependence on Russian gas puts Germany in a crisis that is expected to last at least another three years, economist Marcel Fratzscher, from the German Institute for Economic Research, warns Reuters.
According to Fratzscher, the impact of the energy crisis will be great on the world’s largest economy until 2025, the deadline set by the country to get rid of Russian gas, which corresponds to 55% of the fuel present in Germany. If there is a complete withdrawal of Russian energy, the country led by Olaf Scholz could finally enter a recession.
In 2022 alone, the drop in economic growth is expected to be three percentage points, falling from 4.5% – which was expected before the Russian invasion of Ukraine – to 1.5%.
“The war in Ukraine caused enormous damage to the German economy”, highlighted the economist, noting that the impacts on inflation should also extend until 2025. As the German Central Bank announced on Monday (22), inflation should be 10 % before the end of the year.
“The high degree of uncertainty about gas supplies this winter and strong price increases should weigh heavily on households and businesses,” the bank warned.
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