Berlin The economic research institute Ifo expects energy prices to fall in the long term. In the future, Russia will sell its gas and oil to others, Ifo boss Clemens Fuest told the Tagesspiegel.
These states, in turn, bought less gas from other sources. “That then flows to Europe.” The Ukraine war has changed the energy supply worldwide seen little. However, the conversion of the infrastructure is expensive.
Ifo boss Fuest assumes a winter recession
The economist also spoke out in favor of helping the economy because of the energy crisis. “At least in the case of liquidity support and guarantees, the supply must be large, but that does not mean that it is fully utilized.” The purpose of rescue packages is primarily to keep banks and capital markets in business. If they knew that their customers would not become illiquid, they would continue to lend themselves. The help should only be used if there is no other option. “And I think that will be the case less often than with Corona.
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The Ifo Institute will present its economic forecast on Monday. In his own words, Fuest assumes that Germany slides into recession in winter.