Lean times: lower growth for Germany

Dusseldorf The German economy initially got off to a good start in 2022. Supply chain problems appeared to be gradually dissolving, with industrial production, new orders and job vacancies hitting new records. In addition, the Federal Statistical Office significantly weakened the previously estimated slump in economic output in the final quarter of 2021, and an imminent end to the Omicron corona wave seemed foreseeable. All signals point to an upswing. Until February 24th.

Russia’s attack on Ukraine then shifted all macroeconomic coordinates and constants that were believed to be safe. It quickly became clear that Germany’s dependence on energy imports from Russia had become very great in the past few decades, even too great.