The war in Ukraine has cost the German economy $100B.

The German Institute for Economic Research (DIW) estimated that Russia’s full-scale invasion of Ukraine and the resulting rise in energy prices has cost the German economy about $100B, or 2.5% of GDP. As DIW chief Marcel Fratscher explained, the German economy has been significantly affected by the crisis because it is more dependent on Russian energy sources, has a high share of energy-intensive industry, and is highly reliant on exports and global supply chains. Moreover, the expert predicts that high energy prices will continue to affect the German economy for decades, and local companies will have to compensate with more innovation and higher productivity levels. In turn, the Association of German Chambers of Commerce and Industry (DIHK) predicts that by the end of 2023, the war in Ukraine and its consequences will cost Germany about 4% of its GDP. As a result, the country’s economy will lack about €160B – that is, approximately €2,000 for each resident of Germany.