Inflation rates are abstract for many people, but an estimate by the DIHK makes the current crisis vivid: According to this, every German will lose 2000 euros by the end of the year. Many companies also suffered from high costs, especially for energy. The growth forecasts in this country are also rather low.
According to DIHK estimates, the war in Ukraine will reduce the prosperity of every German citizen by around 2,000 euros by the end of the year. "As well as the human suffering that cannot be outweighed by anything, Russia's war of aggression in Ukraine has also brought with it a loss of economic prosperity," said DIHK President Peter Adrian of the "Rheinische Post".
"A total of 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," said the President of the German Chamber of Industry and Commerce (DIHK). "This means that around 160 billion euros less are generated - the equivalent of around 2000 euros per capita."
This is clearly reflected in the company balance sheets. "Many companies across our economy are experiencing sharply increased costs for gas and electricity." This hits numerous companies hard, as large parts of the economy depend on affordable and available energy, said Adrian. Industry accounts for a higher proportion of the economy in Germany than in many other countries. Important parts of the industry are energy-intensive. That is why German companies are particularly badly affected by the consequences of the war.
"The growth prospects for 2023 and 2024 are therefore lower than in many other countries - as in 2022," said the DIHK boss. The high energy prices thus increasingly turned out to be a locational disadvantage. "The gas price in this country has leveled off at a level three to five times higher than in the USA." Electricity is about four times as expensive for German medium-sized companies as it is in France. The neighboring country relies heavily on nuclear energy.
