Compressor station MOSCOW, May 1. Rising energy prices and a possible embargo on Russian fuel threaten Germany with a recession, economists interviewed told N-TV. given the serious negative risks, things could turn out differently,” said Fritzi Köhler-Gabe, chief economist at KfW bank. She explained that a complex of difficulties is now affecting the economy: disruption of the supply chain, coronavirus restrictions, labor shortages in China, as well as rising prices due to the Ukrainian crisis. Economic expert Veronika Grimm from the German government's advisory council also predicted «bad weather» for the country's economy.Media: EU will have to stop the industry for the sake of abandoning Russian gas»Energy prices can be expected to remain at high levels. This is a serious challenge for competitiveness in the long term,» she said. According to her, without urgent investments in renewable energy, the situation in the country will not be able to straighten out. «Energy policy is also a policy of security, now it has become clear,» she added. Koehler-Gabe agreed with her colleague and pointed to record inflation and a decrease in purchasing power in Germany. She also predicted a decline in income levels this year.Media: Finland is preparing to cut off Russian gas supplies»In the fourth quarter of 2021, agreed hourly wages rose by 1.1 percent — with an inflation rate of five percent,» she cited the data. Allianz economist Katharina Utermel predicted the sharpest decline in real wages since reunification of Germany and the GDR. «Households have never been as pessimistic as they are now. We expect a serious decline in consumption,» the specialist explained, adding that there will be problems in the labor market. Deutsche Bank economist Mark Shattenberg said that positive trends the labor market will run out due to interruptions in the supply of Russian gas.Compact: the region in Germany is waiting for a complete collapse without Nord Stream 2 Germany, like other Western countries, is faced with a sharp increase in fuel prices after the introduction of large-scale sanctions against Moscow in response to the special operation of the Russian army in Ukraine. It was mainly the financial sector and the supply of high-tech products that were hit, but the authorities of a number of countries announced their intention to abandon Russian energy carriers. The Kremlin called these measures an economic war, the likes of which have never been seen before. The authorities stressed their readiness for such a development of events and assured that they would continue to fulfill social obligations. The Central Bank is taking measures to stabilize the situation on the foreign exchange market. The authorities also announced the transfer of payment for gas to unfriendly countries into rubles. In addition, the government has prepared a plan to counter the restrictions, which includes about a hundred initiatives. The volume of its funding will be about a trillion rubles.
