The economic impact on Germany of Russia’s invasion of Ukraine will last for years, influential economist Marcel Fratzscher of the German Institute for Economic Research told Reuters, adding that it could cost 3 percentage points of growth this year.
Fratzscher, whose institute advises the government of Europe’s biggest economy on macroeconomic policy, said the impact could last until 2025, when Germany must rid itself of all exposure to Russian gas.
Germany, which for decades thrived on reliable flows of cheap Russian gas, is looking to reorient itself after the outbreak of war in February.
“The war in Ukraine has done massive damage to the German economy,” Fratzscher said in an interview, adding that perhaps only 1.5% of the 4.5% economic growth he had expected at the start of the year remains.
The impact on inflation, through the rise in energy prices, will also be maintained for the same period, although it rejects suggestions that there is reason for wage restraint.
Source: CNN Brasil
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