The President of the German Institute for Economic Research (DIW), Marcel Fratzscher, expects the Ukraine war to continue to increase costs for the German economy and high growth losses. "The Ukraine war and the associated explosion in energy costs cost Germany almost 2.5 percent or 100 billion euros in economic output in 2022. These costs will continue to grow in the coming years," said Fratzscher of the "Rheinische Post" (Monday ).
"Germany is economically more affected by the crisis because it was more dependent on Russian energy, has a high proportion of energy-intensive industry and is extremely dependent on exports and global supply chains," said the DIW President. The damage to Germany as a business location has not yet occurred, but will occur if companies do not accelerate the ecological, economic and digital transformation.
From Fratzscher's point of view, higher energy prices will remain a clear competitive disadvantage for the next ten years, which politicians and companies will have to compensate for through more innovation and productivity. The federal government should by no means continue down the path of heavy subsidies for fossil fuels.
One year after the start of the Russian war of aggression in Ukraine, the German Chamber of Industry and Commerce (DIHK) also referred to a loss of prosperity in Germany. Overall, around four percent of Germany's gross domestic product is likely to be lost between the beginning of the war and the end of 2023. This means that around 160 billion euros less would be generated - the equivalent of around 2000 euros per capita, DIHK President Peter Adrian told the "Rheinische Post".