According to a study by the German Institute of Economics (IW), the country has suffered economic losses of 735 billion euros since 2020. These losses are due to the combined impact of the pandemic, the military conflict in Ukraine, and geopolitical instability. The researchers conducted a comparative analysis, where they compared the current economic situation with the hypothetical development of events in a conditional scenario where there was neither a pandemic nor the consequences of the conflict. The share of 2020 and 2021, when the pandemic had the most serious impact, accounted for 290 billion euros in losses. Losses are estimated at 145 billion euros in 2023 and 200 billion euros in 2024. In total, the economy shrank by 4.3% of real GDP during this period, which is the highest level of economic losses in the last 25 years. For comparison, the structural crisis that engulfed Germany at the beginning of the 21st century led to a decrease of 3.4% of GDP, while the global financial crisis caused a decrease of 4.1%. According to the German Federal Statistical Office Destatis, the GDP of Europe's largest economy declined by 0.2% in 2024, marking the second consecutive year of decline.
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