17.03.2022 • 6/2022
Price shock jeopardises recovery of German economy
Russia’s war in Ukraine is hitting the German economy primarily via an energy price shock, but also by disrupting trade flows and causing general uncertainty. At the same time, however, the economy is receiving a strong boost from the lifting of many pandemic restrictions. The Halle Institute for Economic Research (IWH) forecasts that gross domestic product will increase by 3.1% in 2022. The consumer price index will be 4.8% higher than one year ago. The war affects the East German eco-nomy about as hard as the economy in Germany as a whole.
Oliver Holtemöller
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