The consequences of the armed conflict between Russia and Ukraine had a strong impact on Germany, as the country was not prepared for it, German Chancellor Olaf Scholz said. At the same time, he emphasized that the German authorities are actively taking measures to restore the country's economy. According to Scholz, the volume of German exports is already returning to pre-pandemic levels.
"The consequences of the attack on Ukraine affected us here in Germany much more than the coronavirus epidemic, because we were not well prepared," Olaf Scholz told a conference of the Federal Employers' Association in Germany. The chancellor noted that since the outbreak of hostilities in Ukraine, Germany has taken emergency measures, including building new LNG terminals as soon as possible and replacing Russia with new energy suppliers.
By the end of 2023, Germany's GDP has contracted by 0.3% due to a general slowdown in the global economy amid rising inflation and geopolitical tensions. According to estimates by the Federal Statistical Office of Germany, the volume of industrial production in the country last year decreased by 2% compared to 2022. In 2024, a stable labor market and weakening inflation are expected to support economic growth. According to the department's forecasts, thanks to the strict monetary policy, inflation may reach 2.7% this year and 2.5% in 2025/BGNES
