German Federation of Industries downgrades growth forecast for this year from 3.5% to 1.5%
Germany, Europe’s largest economy, pointed out that Russia’s sharp cut in gas supply was an economic attack on Germany.
It is predicted that Germany will inevitably fall into a recession if Russia completely cuts off gas supply.
Germany’s Deputy Prime Minister and Minister of Economy and Climate Protection Robert Havek called the cuts in Russia’s gas supply “an economic attack on us” at a meeting of the Federation of German Industries (BDI) on the same day.
Russia has cut its gas supply by 60% through Northstream 1, which runs through the Baltic Sea to Germany from the 16th.
“The attack will be completed by reducing supply and raising prices, as we did with Poland, Bulgaria and Denmark,” said Deputy Prime Minister Havek.
This is to ensure that the debate over whether support for freedom is the right thing to do is stopped, said Deputy Prime Minister Havek.
He said, “People are terrified of material poverty caused by skyrocketing prices, such as energy prices. Fear of poverty, fear that welfare will be damaged, and fear that you will not be able to keep what you have accumulated for the rest of your life are a space for populism. will open,” he warned.
“This is a strategy that is not a coincidence,” said Deputy Prime Minister Havek.
“It’s not just about solidarity with Ukraine, it’s about protecting our political culture, our open society and our free market economy,” he said.
He said, “If winter comes and the gas pipelines are locked, we will have no choice but to discuss the serious economic crisis that Germany will face,” he said. It could be more serious than the COVID-19),” he said.
On the same day, BDI sharply downgraded Germany’s economic growth forecast for this year to 1.5% from 3.5% before Russia’s invasion of Ukraine.
BDI said that if Russia cuts off gas supply, Germany will inevitably fall into a recession.
Before the Ukraine war, the EU’s dependence on Russian gas was 40% and Germany’s was 55%.
/yunhap news
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