Deutsche Bank Warns of Major Recession if Germany Halts Russian Oil and Gas Imports
Germany is slated for a steep recession if it doesn’t reverse course on halting energy imports from Russia.
Faced with the abominable reality of double-digit increases in inflation— which is an inevitable trajectory given the latest 7.3% annual jump in consumer prices last month— Germany is slated for some very though times ahead, especially if bureaucrats fail to acknowledge just how reliant the economy is on Russian oil and gas.
The latest to sound the alarm over Germany’s impending economic crisis is Deutsche Bank CEO Christian Sewing, who forecasts substantially slower growth in 2022 due to the crisis in Ukraine. “The situation would be even worse if imports or supplies of Russian oil and natural gas were to be halted. A significant recession in Germany would then be virtually unavoidable,” he said, as cited by Reuters.
“The question of government aid measures for companies and sectors would then become even more urgent,” he added, calling on the European Central Bank to take a proactive approach in curbing out-of-control inflation. According to Sewing, the European central bank needs to put a stop to its net asset purchases as soon as possible, and send markets a signal with higher borrowing costs. “A signal that is urgently needed,” he warned.
Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.