Economic Impact on Germany of Russia invasion of Ukraine will last years, influential economist Marcel Fracher of German Institute for Economic Research said Wednesday.
The invasion launched by Moscow on February 24 cost 3 percentage points of German economy’s growth This year, Fracher told Reuters.
Fratzscher, whose institute advises government of The largest in Europe economy on total economy policysaid the effect can last Until 2025 when Germany expects to free itself from exposure to Russian gas.
Germany which for Decades flourished from reliable streams of Cheap Russian gas, rushing to reorient itself after outbreak of war in February.
“the war in Ukraine has done huge damage to the German economy, said Färtscher in In an interview, adding that only 1.5% would probably do so remain of 4.5% economic growth was expected in start of The year.
the influence on Inflation, through high energy prices also be sustainable for Similar period, although he rejected the suggestions that existed cause for wage adjustment.
“The guilds are not as strong as they used to be in seventies”, indicating that this year the expected wage growth of 4.5% was too short of Inflation is around 8%.
“until in The coming years do not see sign of us Falling into a pay vortex.
