The Ukraine struggle could have price the German economic system round 160 billion euros ($171 billion), or some 4% of its gross home output, in misplaced worth creation by the top of the yr, the top of the German Chambers of Business and Commerce (DIHK) stated.

Meaning GDP per capita in Europe’s largest economic system might be 2,000 euros decrease it could in any other case have been, DIHK chief Peter Adrian advised the “Rheinische Publish”.

Business makes up the next share of the economic system in Germany than in lots of different nations, and the sector is for essentially the most half energy-intensive, that means German firms have been particularly exhausting hit by a surge in power costs, which final yr hit document highs in Europe.

German trade is ready to pay about 40% extra for power in 2023 than in 2021, earlier than the disaster triggered by Russia’s invasion of Ukraine on Feb. 24 final yr, a research by Allianz Commerce stated final month.

“The expansion outlook for 2023 and 2024 is subsequently additionally decrease than in lots of different nations,” Adrian stated, including that was additionally the case final yr.

Germany, which for many years relied on comparatively low-cost Russian pipeline fuel, now has particularly excessive power costs in contrast with the USA that has its personal pure fuel reserves, whereas France has considerable nuclear energy.

“The fuel value is round three-five instances increased than in the USA,” he stated, including electrical energy was 4 instances as costly as in France.