Germany: The blow of the war to the economy will last for years – Marcel Fratzscher

The economic impact on Germany of the Russian invasion of Ukraine will last for yearsthe influential economist told Reuters Marcel Fratzscher, of the German Institute for Economic Research, who added that it could cost 3 percentage points of growth this year. It should be noted that the institute advises the government of Europe’s largest economy on macroeconomic policy.

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The war in the Ukraine has caused massive damage to the German economy.

Perhaps there is only 1.5% left of the 4.5% economic growth expected at the beginning of the year.

The unions are not as strong as they were in the 1970s.

The projected wage growth for this year, at 4.5%, was well below inflation, which was around 8%.

Even in the next few years I don’t see any signs that we are going to fall into a salary spiral.

Source: Fx Street

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