Russia-Ukraine conflict and fuel price rises will hit the German economy by nearly $265 billion – thinktank concludes

Berlin: – German thinktank ‘Institute of Employment Research’ (IAB) claimed that the German economy would take a hit worth $265 billion over the next few years given the Russia-Ukraine conflict and the fuel price rise. The IAB reports also predict that there will be a decline of nearly 1.7% in the German GDP in the next year and nearly 250 thousand will lose employment. Just a few days ago, a US economist made a sensational claim that the objective of the United States in the Ukraine conflict is to finish the mighty European competitor like Germany. Against this background, the claim made by the German think tank draws attention.

The United States and western countries have imposed stringent sanctions against Russia following the start of the Ukraine conflict in February. It was claimed that the goal was to rock the Russian economy and stop the conflict. But it has been revealed that instead of Russia, the economies of the United States and western countries are facing the heat of sanctions. Inflation has flared up in most European countries and the United States, and the rates for everything from food grain to fuel have skyrocketed. Predictions are being made that this flare-up will culminate in the western countries being hit by the recession. The growth rates of leading economies like the United States, Great Britain and Germany have declined in the last six months. The report by the German think tank only endorses this.

The IAB report claims that the effects of the Russia-Ukraine conflict will be felt in the German economy until 2030. The report also warns that unemployment will increase in Germany over the next three to four years. IAB has predicted major hits for the hospitality, chemical, and metals industries. A report that the German industry sector has been hit hard was published recently and there is also a decrease in the market demand. Whereas no increase has been reported in the German economy for two successive quarters. German industry associations have also warned that Russia’s reduced fuel supplies will severely jolt Germany. US economist Michael Hudson had recently claimed that the European countries are facing maximum losses in view of the anti-Russia stand adopted by them. In this, he had pointed to the issue of US strategy and underlined that Germany is bearing the biggest brunt of this.