“If the Russian gas supply is cut, the German economy is threatened with a deep recession”

In 2023, the gross domestic product of Europe’s largest economy would fall by 2.2% if gas supplies, on which Germany is particularly dependent, were cut off, say these six influential organizations (DIW, IFO, IfW, IWH and RWI). The cumulative loss of GDP over 2022 and 2023 would amount to around €220 billion, or 6.5% of annual wealth, they say.

“If the gas supply fails, the German economy is threatened with a deep recession”comments Stefan Kooths, Vice President of the IfW, in a press release.

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