Germany deals with severe decline in real profit
Date
11/9/2022 3:54:20 AM
(MENAFN) The German Economy is estimated to decline billions of euros by the close of next year because of huge increases in energy costs, the Ifo Center for Macroeconomics stated in a report issued on Tuesday.
In line with the estimate, real income decline is going to amount to €110 billion (USD110 billion) throughout the 2021-2023 time span, which amounts to 3 percent of Germany's yearly financial production.
“The only time this figure was higher was during the second oil crisis of 1979-81, when the loss in economic output was 4 percent,” as stated by Timo Wollmershaeuser, senior economist at Ifo.
The increase in energy costs is estimated to take a heavy pressure on the German economy in 2022, with an expected €64 billion decrease, or 1.8 percent of the nation’s production.
German citizens are going to carry on to feel the effect of the energy catastrophe throughout the upcoming few years with a fall in real revenues, Wollmershaeuser cautioned, also stating that decreasing Russia as the major energy provider is going to have a good outcome in lasting high oil and gas costs.
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