Germany's estimated cost of Ukrainian war is 160 billion euros...
By the end of the year, lost value creation from the Ukrainian war will have cost the German economy some 160 billion euros ($171 billion), or almost 4% of its gross domestic product, according to the chairman of the German Chambers of industry and Commerce (DIHK).
According to DIHK CEO Peter Adrian, this will result in a 2,000 euro reduction in the GDP per capita of the biggest economy in Europe.
Because industry makes up a larger portion of the German economy than it does in many other nations and because it uses a lot of energy, German businesses have been particularly severely impacted by an increase in energy prices, which last year reached record highs in Europe.
According to a report released last month by Allianz Trade, German industry will pay around 40% more for energy in 2023 than it did in 2021, before the crisis brought on by Russia's invasion of ukraine on february 24 of last year.
Adrian stated that this is why "the growth estimate for 2023 and 2024 is similarly lower than in many other nations," noting that this was also the case the previous year.
In contrast to the United States, which has its own natural gas reserves, Germany, which for long years relied on comparatively inexpensive Russian pipeline gas, today has very high energy prices, while france has an abundance of nuclear power. He added that electricity was four times more expensive than in france and that the price of gas was roughly three to five times more than in the United States.
