20.02.2023 14:43
Germany will continue to suffer economic losses in coming years due to war and rise in energy costs, according to Marcel Fratzscher.
Germany suffered an economic loss of over $106 billion last year due to the Russia-Ukraine war, a senior expert said on Monday.
"The Ukraine war and the exploded energy prices cost Germany around €100 billion ($106.8 billion) or 2.5 percent of the economic output in 2022," Marcel Fratzscher, the head of the German Institute for Economic Research, said.
"Germany is economically more affected by the crisis because it was more dependent on Russian energy supplies, has a high proportion of energy-intensive industry, and is extremely dependent on exports and global supply chains," he told the German daily Rheinische Post.
Fratzscher also said the Ukraine war's cost for Germany will continue to grow in the coming years.
Higher energy prices will remain a clear competitive disadvantage for the country, he said, adding that Germany should focus on innovation and productivity to compensate for this disadvantage.
Germany's relations with Russia have been strained over the war in Ukraine, with Berlin accusing Moscow of war crimes, halting bilateral cooperation, and imposing tough economic sanctions.
Before the war began in February 2022, Russia was supplying nearly 55% of Germany's natural gas and 35% of its crude oil.
Chancellor Olaf Scholz's coalition government joined Western sanctions against Moscow and also announced plans to end his country's reliance on Russian energy.
Since the explosions in the Nord Stream undersea pipelines in September, Germany has been importing no gas from Russia. -