German economy to lose $265 billion in added value due to war, high energy prices, study says
German economy to lose $265 billion in added value due to war, high energy prices, study says
Germany's economy will lose more than 260 billion euros ($265 billion) in added value by 2030 due to the Ukraine war and high energy prices
Germany's economy will lose more than 260 billion euros ($265 billion) in added value by 2030 due to the Ukraine war and high energy prices
spelling negative effects for the labour market, according to a study by the Institute for Employment Research (IAB).
spelling negative effects for the labour market, according to a study by the Institute for Employment Research (IAB).
In comparison with expectations for a peaceful Europe, Germany's price-adjusted gross domestic product (GDP)
In comparison with expectations for a peaceful Europe, Germany's price-adjusted gross domestic product (GDP)
will be 1.7% lower next year and there will be about 240,000
will be 1.7% lower next year and there will be about 240,000
fewer people in employment, said the study published on Tuesday Aug 9.
fewer people in employment, said the study published on Tuesday Aug 9.
The employment level is expected to stay at around this level until 2026,
The employment level is expected to stay at around this level until 2026,
when expansive measures will gradually begin to outweigh the negative effects and lead to a plus of about 60,000 gainfully employed in 2030.
when expansive measures will gradually begin to outweigh the negative effects and lead to a plus of about 60,000 gainfully employed in 2030.
One of the big losers will be the hospitality industry, which was already hit hard by the coronavirus pandemic
One of the big losers will be the hospitality industry, which was already hit hard by the coronavirus pandemic
and is likely to feel the pinch of consumers' waning purchasing power.
and is likely to feel the pinch of consumers' waning purchasing power.
Energy-intensive sectors, such as the chemical industry and metal production, are also especially likely to be affected.
Energy-intensive sectors, such as the chemical industry and metal production, are also especially likely to be affected.
If energy prices, which have so far shot up by 160%, were to double again, Germany's 2023 economic output would be
If energy prices, which have so far shot up by 160%, were to double again, Germany's 2023 economic output would be
almost 4% lower than it would have been without the war, according to the study.
almost 4% lower than it would have been without the war, according to the study.