BAs a result of the Ukraine war, Federal Labor Minister Hubertus Heil (SPD) only expects economic growth of 1.4 to 1.5 percent this year and more than half a million short-time workers. “On average, we expect 590,000 short-time workers this year,” Heil told the “Bild am Sonntag”. According to the researchers’ forecasts, economic growth will be between 1.4 and 1.5 percent, so growth will remain.

“But the whole thing is subject to the proviso that the war does not spread and that the energy supply is in place,” emphasized Heil. He assured that if the situation worsened, the federal government would “secure jobs wherever possible with further targeted economic aid and short-time work”.

Baden-Württemberg’s Prime Minister Winfried Kretschmann (Greens) expects a noticeable and long-lasting loss of prosperity in Germany as a result of the Ukraine war. “Many will have less money and less prosperity,” Kretschmann told the Berlin “Tagesspiegel” on Sunday. “And these losses will be significant and painful – and possibly last for years,” added the Green politician.

Energy supplier Russia

Kretschmann expects that energy prices will continue to rise and that Germany is facing a “long phase of confrontation with an aggressive Russia”. The country must prepare for this and cushion financial hardship for low earners. “We have enough instruments for that,” Kretschmann told the “Tagesspiegel”.

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