Germany faces possible $265 billion loss in added value as a byproduct of war and high energy prices
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Germany's economy will lose more than 260 billion euros ($265 billion) in added value by 2030 due to the Ukraine war and high energy prices, spelling negative effects for the labor market, according to a study by the Institute for Employment Research (IAB).
In comparison with expectations for a peaceful Europe, Germany's price-adjusted gross domestic product (GDP) will be 1.7% lower next year and there will be about 240,000 fewer people in employment, said the study published on Tuesday.
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The employment level is expected to stay at around this level until 2026, when expansive measures will gradually begin to outweigh the negative effects and lead to a plus of about 60,000 gainfully employed in 2030.
One of the big losers will be the hospitality industry, which was already hit hard by the coronavirus pandemic and is likely to feel the pinch of consumers' waning purchasing power.