Quarterly Report Germany I/2022: Ukraine war dampens investment

The economic outlook for Germany looks very bleak. The war in Ukraine is considerably dampening economic expectations and the willingness of industry to invest. A disruption in gas imports from Russia threatens to trigger production disruptions in many sectors via complex cascading effects. In addition, high energy prices cause considerable losses of purchasing power for consumers. After two years of pandemic, hardly any increases in private consumer spending are to be expected.