Because of Vladimir Putin’s war against Ukraine, gas, fuel and food prices are skyrocketing here. More and more Germans can barely afford to live!
Economy Minister Robert Habeck (52, Greens) only put citizens in the mood for tough times earlier this month, prophesying: “We’re going to get poorer.”
Today he explains HOW MUCH poorer. The minister significantly lowered his economic growth forecast, expecting growth of just 2.2% for this year. In January, the federal government had assumed 3.6 percent, in the fall of 4.1. Habeck called that estimate “conservative” and said it was on the lower end of forecasts from major economic institutes. For next year, the federal government expects a growth of 2.5%.
Habeck’s forecast does NOT include a possible suspension or embargo on Putin’s gas, he emphasized. If one of the two happens, Germany will go into recession, so the economy will shrink!
According to Habeck, the price shock is likely to continue weighing on us for some time: this year he expects inflation to rise 6.1 percent after 3.3 percent in January.
The consequence, according to Habeck: there is less money left for “private consumption”: “This is going to the restaurant or the cinema you expected”.
Habeck clearly: “This means that Germany is literally getting poorer.” It is impossible for the federal government to offset all costs. However, Germany must be prepared to pay this price to support Ukraine. It is an “indirect support” of the country.
Germany more independent of Putin’s gas
This also includes becoming independent from Russian energies (coal, oil, gas). Habeck also announced good news: Germany receives only 35% of its gas supply from Russia. Last year, the proportion was more than half (55%), in March it was 40%.
► The International Monetary Fund (IMF) had already corrected its forecast this month, expecting a GDP growth of 2.1% for Germany. In January, the IMF had estimated an increase of 3.8%.
The so-called “wise businessmen” had already significantly reduced their economic forecasts for Germany. The German Council of Economic Experts expects gross domestic product to grow by just 1.8%. In their previous November 2021 forecast, they still expected 4.6%.
According to estimates by economic experts, the monstrous inflation is also likely to last longer. Calculated for the year as a whole, experts expect inflation of 6.1%. Next year, it should therefore still be 3.4 percent.