February 2024 marks the end of the second year of the war in Ukraine. Russia’s attack has directly impacted the German economy, with energy costs skyrocketing and supply chains disrupted. Total expenses amounted to more than 200 billion euros.
“After two years of war in Ukraine, Germany’s economic costs will probably be significantly higher than 200 billion euros,” said Marcel Fratscher, president of the German Institute for Economic Research (DIW), in an interview with the Rheinische Post.
“2022 The increase in energy prices reduced Germany’s economic growth by 2.5% or 100 billion euros, which continued in the same way until 2023. and until now,” said Marcel Fratscher.
According to the unpublished report of the German Industrial Institute, in 2022-23, The damage to the German economy due to the war in Ukraine and the post-epidemic consequences of the coronavirus amounted to 240 billion euros.
Federal Economy Minister Robert Habeck (Greens) admitted that the government’s forecast for the current year is only 0.2% growth, a “significantly bad” development.
The study says that if the effects of the pandemic and geopolitical events (war in Ukraine, conflicts in the Middle East) are summed up from the beginning of 2020, the total loss of economic growth will be 4%. This resulted in a consumption loss of more than €400 billion (around €4,800 per capita).
