Germany's economic losses reach €735 billion since 2020

Germany has suffered economic losses amounting to €735 billion since 2020 due to the COVID-19 pandemic, the conflict in Ukraine, and overall geopolitical instability, according to a study by the German Economic Institute. A Record Decline in GDP Analysts compared the actual trajectory of Germany's economy with a hypothetical scenario in which there were no pandemic, sanctions, or energy crisis stemming from strained relations with Russia. Their findings indicate that over the past five years, Germany has lost 4.3% of its real GDP-marking the steepest economic decline in the past 25 years. In 2020 and 2021, the pandemic and related restrictions cost the economy €290 billion. In 2023, Germany missed out on a potential €145 billion. In 2024, the estimated loss is €200 billion. According to Germany's Federal Statistical Office, the country's economy, the largest in the European Union and a global industrial powerhouse, continues to struggle. In 2024, GDP contracted by 0.2%, marking the second consecutive year of recession.