Monitoring Desk
ISLAMABAD: The head of the German Institute for Economic Research Germany Marcel Frazscher said Monday that the German economy had suffered a loss of over $106 billion last year of Ukraine conflict.
Frazscher said that the Russia-Ukraine war “exploded energy prices” and cost Germany around $106.8 billion, which is 2.5 percent of the economic output in 2022.
Speaking to the German daily Rheinische Post, Frazscher said further that due to Germany’s dependence on Russian energy supplies, its economy has been affected more. This is so, because the country has a high proportion of energy-intensive industries, and is extremely dependent on global supply chains and exports.
Focus on innovation, productivity needed to boost German economy
The economy expert added that in the coming years, the cost of Ukraine’s war with Germany would continue to increase. He opined that Germany needs to focus on productivity and innovation to counter higher energy prices as for the country such rates will remain a clear competitive disadvantage.
Prior to the start of the war in February 2022, Russia was supplying nearly 35% of Germany’s crude oil and 55% of its natural gas crude oil.
The coalition government of Chancellor Olaf Scholz joined Western sanctions against Moscow and also unveiled plans to end Germany’s reliance on energy imports from Russia. In September 2022, n the Nord Stream undersea pipelines were hit by explosions and since then Germany has not been importing any gas from Russia.
