According to a study conducted by the Institute for Employment Research, Germany’s economy will lose more than 260 billion euros ($265 billion) in added value by 2030 as a result of the Ukraine war and rising energy costs, which will have a detrimental impact on the labor market (IAB).

In comparison to hopes for a peaceful Europe, Germany’s price-adjusted GDP (GDP) will be 1.7 percent lower next year, with approximately 240,000 fewer people working, according to a report released on Tuesday.

The employment level is predicted to remain around this level until 2026, when expanding efforts are expected to gradually balance the negative effects, resulting in a gain of roughly 60,000 gainfully employed in 2030.

The hospitality business, which was already hard hit by the coronavirus pandemic and is sure to feel the pinch of customers’ dwindling purchasing power, will be one of the biggest losers.

Energy-intensive industries, such as the chemical industry and metal production, are also particularly vulnerable.

According to the analysis, if energy prices, which have already risen by 160 percent, double again, Germany’s economic production in 2023 will be around 4 percent lower than it would have been without the conflict. According to these predictions, 660,000 fewer individuals would be employed after three years and 60,000 less in 2030.

Source: Reuters

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