Germany’s government is taking measures to prepare people and businesses for tough times, which are inevitable if Russia shuts off gas supplies.
The eurozone largest economy may show a long-lasting slump without Russian energy resources. In the last three months, factory orders have tumbled, whereas expenses are only surging.
According to Deutsche Bundesbank, next year, the German economy may collapse by more than 3%. Anxiety in German government circles increased after a decrease in the volume of fuel exported through the Nord Stream pipeline.
In June, Germany’s business expectations index unexpectedly dropped. Most companies are getting ready for an extended contraction in consumer activity. Meanwhile, enterprises involved in the production of paper, metal, and foods are considering a plan of action if they have to stop their production facilities. Such a state of affairs is foreshadowing a real economic catastrophe in Germany.
