IfW Kiel Vice President Stefan Kooths pointed out on Wednesday that Germany’s economy will grow less than expected in 2022 as a result of the war in Ukraine, and added that the most severe impact could be recession in 2023 if the supply of Russian gas is cut.

He added that there are no good news to announce when presenting his predictions in Berlin.

Kooths noted that the war in Ukraine has resulted in added stress to international supply chains of raw materials and goods, already affected by the restrictions imposed around the world to counteract the Covid-19 pandemic.

According to the five economic institutes that presented their spring forecasts, the growth of German economy will slow down drastically in 2022 as a result of the Russia-Ukraine conflict.

The impact will push back the growth of German economy down to 2.7 percent, or just 1.9 if Russian gas imports are suspended, sending the country into recession in 2023.

jg/llp/mgt/rfc