By Nicolas PromanzioAccording to a report by the German Economic Institute, the expense of sustaining the war in Ukraine for Germans will total up to US$ 190 billion.Adding to the Covid-19 crisis and the repercussions of the war, the total damage to the German economy will be US$ 600 billion between 2020 and 2023.
The German economy will have to invest some EUR175 billion (US$ 190 billion), comparable to 4.5% of its predicted GDP by 2023, to sustain the policy Chancellor Olaf Scholz announced to support Ukraine in the war this year, according to a report by the German Economic Institute (IW).
Robert Habeck, Vice-Chancellor of Germany (Photo internet recreation)The report, published on Monday, January 23, days prior to Scholz authorized the shipment of 14 Leopard 2A6 tank systems, compared the current scenario with a fictitious circumstance in which neither a military operation in Ukraine nor the taking place sanctions imposed on Russia, which caused skyrocketing energy rates, inflation and supply chain disturbances, would have been triggered.
New IW calculations estimate financial losses in 2023 at EUR175 billion.
This corresponds to a well-being loss of EUR2,000 per inhabitant, the report quotes.They determined that the German economy would have a Gross Domestic Product (GDP) 4.5% greater than if the conflict continued throughout the year.The economists explained that the nations federal advancement bank, KfW, had currently alerted of a danger to prosperity in Germany due to an absence of qualified workers and inadequate efficiency growth.In 2020, Germany recorded a loss of around EUR175 billion, another EUR125 billion in 2021, and practically EUR120 billion in 2022 due to the pandemic.The report said the predicted losses of EUR175 billion for this year, the overall damage to the German economy between 2020 and 2023 from Covid-19, and the conflict in Ukraine of EUR595 billion (US$ 650 billion).
The situation in the economy will remain precarious in the coming months, which will impede a healing in Germany, according to German Economic Institute IW professor Michael Gromling.This report reaffirms what La Derecha Diario has reported about how the European Union and the United States bear the brunt of their sanctions.These brutal sanctions have not considerably impacted Russia, which now turns its exports to China and India, among many others.The Bank of Russia announced a couple of weeks ago that the country continues to increase its foreign exchange reserves, which went beyond US$ 580 billion in December.This monstrous number, supported by the increase in exports and the favorable revaluation of currencies, would make it possible to sustain the offensive in Ukraine for several months and even years without substantial complications.Germany, however, will look for to eliminate its dependence on Russian hydrocarbons.Whatever the speeches of Scholz, Borrel, or any regional official might state, it is a truth that terminals are being inaugurated in Germany to provide liquefied gas, generally from Qatar and Iraq.Olaf Scholz opens the valve at the new LNG terminal in Lubmin (Photo internet reproduction)On Saturday, January 14, Germanys second melted gas terminal in the Baltic Sea city of Lubmin formally started operations.The event was attended by Chancellor Olaf Scholz, who saw the plant operators receive the required license and then visit the floating terminal.The new terminal will provide approximately 5.2 billion cubic meters of gas each year, primarily to eastern Germany.It is the 2nd regasification plant of its kind in Germany, the previous one having opened a month ago in the port city of Wilhlemshaven.In addition, two more regasification plants will be inaugurated in the coming months to reach a total capacity of 33 billion cubic meters of gas per year.For reference, the NordStream pipeline provided Germany with 60 billion cubic meters of gas in 2021.
This pipeline was screwed up in 2015, with no culprits yet.With info from Derecha Diario