Germany will pay 160 billion euros for war in Ukraine in 2023
2023.02.19 12:06
Germany will pay 160 billion euros for war in Ukraine in 2023
By Ray Johnson
Budrigannews.com – According to the head of the German Chambers of Industry and Commerce (DIHK), the war in Ukraine will have cost the German economy approximately 160 billion euros ($171 billion), or about 4% of its gross domestic product, in lost value creation by the end of the year.
According to DIHK chief Peter Adrian, this means that the GDP per capita of Europe’s largest economy will be 2,000 euros lower than it would have been otherwise.
Germany’s industry has a higher share of the economy than many other countries, and it uses a lot of energy. As a result, German businesses have been particularly hard hit by the rise in energy costs, which reached record highs in Europe last year.
According to a study conducted by Allianz (ETR:), German industry will pay approximately 40% more for energy in 2023 than it did in 2021 prior to the crisis that was brought on by Russia’s invasion of Ukraine on February 24, 2018. Trade stated a month ago.
Adrian stated, adding that this was also the case last year, “The growth outlook for 2023 and 2024 is therefore also lower than in many other countries.”
Compared to the United States, which has its own reserves, and France, which has an abundance of nuclear power, Germany, which for decades relied on relatively inexpensive Russian pipeline gas, now has particularly high energy prices.
He added, “The price of gas is about three to five times higher than in the United States,” and that electricity was four times more expensive in France than in the United States.
