BERLIN (Reuters) – Germany’s economy will lose more than 260 billion euros ($265 billion) in added value by 2030 due to the Ukraine war and high energy prices, spelling negative effects for the labour market, according to a study by the Institute for Employment Research (IAB).
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, said the study published on Tuesday.
The employment level is expected to stay at around this level until 2026, when expansive measures will gradually begin to outweigh the negative effects and lead to a plus of about 60,000 gainfully employed in 2030.
One of the big losers will be the hospitality industry, which was already hit hard by the coronavirus pandemic and is likely to feel the pinch of consumers’ waning purchasing power.
Energy-intensive sectors, such as the chemical industry and metal production, are also especially likely to be affected.
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, according to the study. Under these assumptions, 660,000 fewer people would be employed after three years and still 60,000 fewer in 2030, it said.
($1 = 0.9809 euros)
(Reporting by Christian Kraemer, Writing by Miranda Murray, Editing by Kirsti Knolle)
Global Banking & Finance Review
Why waste money on news and opinions when you can access them for free?
Take advantage of our newsletter subscription and stay informed on the go!
By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact
Investing4 days ago
China Asset Management Co., Ltd. Recognized with Two Key Accolades in the 2023 Global Banking & Finance Awards®
Finance4 days ago
Loan Product Launch: Idea to Market. Insights from Neofin.
Top Stories4 days ago
UK retailers see weak sales growth in November despite Black Friday deals
Finance4 days ago
WOW EARN Unveils Layer 1 Blockchain, Redefining Efficiency and Global Accessibility