Germany faces “the worst economic crisis since World War II,” predicted the British edition Financial Times.
The authors of the material believe that the death of German economy may occur if Berlin imposes an embargo on Russian energy carriers. According to the forecast, Germany’s GDP in 2022-2023 years may decrease by 6.5 percent that, in turn, will destroy the economy of the country, which, according to the publication, is already a “sick man” of Europe.
According to calculations by the Bundesbank, the immediate abandonment of Russian gas would cost Germany 180 billion euros in lost GDP this year. If the conflict in Ukraine escalates and an embargo on Russian energy resources is imposed, the German economy will lose 2 percent this year.
Deutsche Bank Vice President Karl von Rohr had previously warned that Germany’s inflation rate could reach 10 percent if energy imports from Russia were restricted. According to his forecast, the annual inflation rate will be seven to eight percent, and possibly 10 percent. Inflation could reach double digits if energy imports are more limited.
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