4 minutes agoEnergy crisis will cost German economy 64 billion euros
Periskopi(4 years ago)
(4 years ago)As higher gas and oil prices continue to drain billions of euros, real losses of German economy revenues in 2022 will reach about 64 billion euros, according to the Munich-based Ifo Institute for Economic Research. The figure is equal to 1.8% of Germany's economic output, it says [...]
The figure is equal to 1.8% of Germany's economic output, said in a report released by the institute on Tuesday.
The country lost 35 billion euros last year and is expected to have another 9 billion euros in losses next year.
Together, this gives us a real revenue loss over these three years of almost 110 billion euros, or 3% of annual economic output,” said Timo Wolfmershauser, head of the projections in Ifo.
The only time this figure was higher was during the second 1979-81 oil crisis, when the loss of economic output was 4%,” he added.
He warned that the current decline in real income is expected to continue over the coming years.
“S first, Russia's loss as a supplier means that energy prices will likely remain high for a long term. Second, Germany will not relieve itself of its dependence on overnight energy imports,” said Wolfmershauser.
According to official preliminary estimates, Germany's annual inflation reached a new historic level of 10.4% in October, driven mainly by an annual increase of 43% in energy costs. / AA
