War Hit to German Economy Will Last Years: Economist
BERLIN—The economic impact on Germany of Ukraine’s war will last years, influential economist Marcel Fratzscher of the German Institute for Economic Research told Reuters, adding that it could cost 3 percentage points of growth this year.
Fratzscher, whose institute advises the government of Europe’s largest economy on macroeconomic policy, said the impact could last until 2025 when Germany expects to have freed itself from all exposure to Russian gas.
Germany, which for decades prospered from reliable flows of cheap Russian gas, is rushing to reorient itself after the outbreak of war in February.
“The war in Ukraine has done massive damage to the German economy,” Fratzscher said in an interview, adding that perhaps only 1.5 percent would remain of the 4.5 percent economic growth he had expected at the start of the year….