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Germany’s GDP could be up to 5% below forecast in case of voluntary or forced cessation of Russian gas imports

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“Germany’s real GDP could be up to 5% lower than expected” The Bundesbank reports in its monthly economic report for April, Agerpres reports.

In such a scenario, the German economy could enter a recession, while inflation would increase by 1.5% in 2022 and by 2% in 2023 compared to projected values.

An embargo on Russian gas is the subject of heated discussions between EU states following Russia’s aggression against Ukraine.

Germany is among the EU states hostile to such an embargo against Russia, given that last year 55% of German gas imports came from Russia.

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“We want to avoid a dramatic economic crisis, the loss of millions of jobs and the closure of factories that would never be reopened,” Chancellor Olaf Scholz said on Friday.

According to the quoted source, however, the German government, which has already reduced the share of Russian gas in total gas imports by 40% this year, plans to completely phase out gas from Russia by mid-2024.

For this, three billion euros have recently been allocated for the purchase of floating terminals for the import of liquefied natural gas (LNG). But the purchase of these gases, brought by gas carriers, is more expensive than that of gases transported through existing pipelines.

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