According to a study by the Institute for Employment Research (IAB), Germany’s economy will lose more than EUR260 billion ($265 billion) in added value by 2030 due to the Russia-Ukraine war and high energy prices, Reuters reported on Tuesday.
Additional takeaways
“In comparison with expectations for a peaceful Europe, Germany’s price-adjusted gross domestic product (GDP) will be 1.7% lower next year and there will be about 240,000 fewer people in employment.”
“The employment level is expected to stay at around this level until 2026.”
“One of the big losers will be the hospitality industry.”
“If energy prices, which have so far shot up by 160%, were to double again, Germany’s 2023 economic output would be almost 4% lower than it would have been without the war.”
Market reaction
The shared currency is little affected by the above findings of the study, with EUR/USD trading at daily highs of 1.0238, adding 0.40% on the day.