Today: Tuesday, 5 March 2024 year

Germany predicted gloomy future

Germany predicted gloomy future

Cutting off Russian gas supplies to Germany will cause long-term damage to the country’s economic landscape, with Berlin preparing people and businesses for “challenging times”, experts say

According to the German Bundesbank, the German economy will shrink by more than three percent in 2023 if energy supplies from Russia are cut off. At the same time, after the reduction in Russian gas supplies via Nord Stream, Europe’s largest economy is already “covering fears.”

“The outlook <…> is bleak. Factory orders have fallen over the past three months, costs are rising, and confidence is crumbling,” experts say, noting that business expectations in Germany unexpectedly fell this month as well.

Local companies are preparing for a long-term reduction in energy consumption. For example, BASF, the largest chemical corporation in Europe, may cut production due to the rising cost of gas, which is used as a feedstock and to generate electricity.

“Germany is preparing consumers and businesses for difficult times,” experts say.

Thus, the head of the German Federal Grid Agency, Klaus Müller, warned that households could face doubling or tripling gas bills, urging the population to save money and energy.