The head of the German Institute for Economic Research (DIW) has said he expects Russia’s invasion of Ukraine to continue to hamper growth and inflate costs in the German economy.
German government interventions and a mild European winter have cushioned the blow of the war and its consequences, but Europe’s largest economy is likely heading for a recession.
DIW President Marcel Fratzscher said the war and its effect on driving up energy prices have already cost the German economy about €100 billion ($107 billion), or about 2.5% of gross domestic product (GDP).
