Germany heavily dependent on raw material imports
2022.12.14 04:20
Germany heavily dependent on raw material imports
Budrigannews.com – According to a study that was seen by Reuters, Germany is heavily reliant on imports for many essential raw materials and frequently completely depends on other nations to meet demand. The study warned that authoritarian regimes account for a significant portion of this reliance.
Germany’s dependence on imports for 14 of the 30 raw materials identified by the DIW research institute is 100 percent.
For another three, reliance was positioned at more than 95%, the DIW said.
Commodities that were deemed essential but also subject to increased supply risk were considered critical.
According to Lukas Menkhoff, head of the DIW’s global economics department, “Russia has shown us dramatically this year how dependence on raw materials can be used by autocratic regimes as a means of political pressure and what serious economic consequences this dependence has.”
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Since the beginning of the conflict in Ukraine, Russia’s energy imports have dropped dramatically, sending Europe’s largest economy into a frenzy for alternative energy sources and raising inflation.
The study found that Germany and the European Union as a whole are more than 90% dependent on supplies from China when it comes to rare earths, which are necessary for the construction of wind turbines and electric cars.
