Even before the start of the Russian war of aggression against Ukraine, the German government had lowered its economic forecast significantly. The war made the situation even worse.
The German government believes that the Russian war of aggression against Ukraine and its consequences will have a noticeable impact on growth in Germany.
“On average, we expect 590,000 short-time workers this year, according to the forecast of our researchers, economic growth is 1.4 to 1.5 percent, so growth will remain,” said Labor Minister Hubertus Heil of “Bild am Sonntag”. “But the whole thing is subject to the condition that the war does not spread and that the energy supply is in place.”
The federal government had already significantly lowered its economic forecast at the end of January – several weeks before the start of the war in Ukraine. Because of the corona pandemic, she only assumed 3.6 percent economic growth at the time. The previous government had expected 4.1 percent in autumn 2021.
However, the Russian attack on Ukraine and the consequences of the sanctions against Russia have now completely changed the situation. According to their economic forecast from the end of March, the “economic experts” only expect growth in gross domestic product of 1.8 percent this year. According to the experts, things could get even worse if the Ukraine conflict were to worsen and if Russian energy imports were to be stopped. Last November they had still expected an increase of 4.6 percent.
Heil assured that if the situation worsened, the federal government would “secure jobs wherever possible with further targeted economic aid and short-time work”.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
