Bloomberg thought that cutting off Russian gas supplies to Germany would cause long-term damage to the German economy, and Berlin warned its citizens and businesses about “hard times.”
The agency said estimates from the German Bank (Bundesbank) indicate that the German economy will shrink by 3% in 2023 if energy supplies from Russia are cut off. At the same time, the reduction in Russian gas supplies via the Nord Stream gas pipeline has already caused concern in Europe’s largest economy.
“The outlook is already grim. Over the past three months, factory orders have fallen, costs have risen, and confidence has collapsed,” she wrote, noting that the German jobs outlook index unexpectedly collapsed this month.
Local enterprises in the country are preparing for a long-term reduction in energy consumption. For example, BASF, Europe’s largest chemicals producer, could cut its production due to rising prices for gas, which is used as a feedstock in the manufacturing process and for power generation.
The agency confirmed that “Germany has warned consumers and businesses about difficult times.” He quoted the head of Germany’s Federal Grid Agency, Klaus Müller, who warned households in the country could face a doubling or tripling of prices and urged the public to save money and energy.
“It is possible that factories producing metals, paper and even foodstuffs will be forced to reduce or close their doors in Germany, leading to a permanent reduction in employment in the industry and causing long-term damage to the country’s economic landscape. .”
Source: RIA Novosti