The Ukrainian conflict could cost a fortune to Europe’s largest economy. Still, Germany intends neither to stop providing financial support for the country nor lift sanctions against Russia.
According to the Institute for Employment Research (IAB), Germany could lose about €260 billion ($265 billion) in 2023 due to the Ukrainian crisis and high energy prices. The country will face problems already by the end of next year. In 2023, Germany's price-adjusted gross domestic product (GDP) is expected to be 1.7% lower than forecast. Meanwhile, employment could plunge by 240,000. The employment rate is projected to stay at around this level until 2026 and rise by 60,000 by 2030 only.
Energy prices have climbed by 160% since February 24. If the figures double again, Germany’s economic output will fall by 4% in 2023. In such a case, as many as 600,000 people will be unemployed by 2026 and 60,000 more will lose their jobs by 2030.
