Dusseldorf The German economy got off to a good start in 2022. The supply chain issues appeared to be gradually dissolving, industrial production, new orders and the number of vacancies reached new records. In addition, the Federal Statistical Office significantly weakened the previously estimated slump in economic output in the final quarter of 2021, and an imminent end to the Omicron corona wave seemed foreseeable. All signals point to an upswing. Until February 24th.
Russia’s invasion of Ukraine then shifted all macroeconomic coordinates and constants that were believed to be safe. It quickly became clear that Germany’s dependence on energy imports Russia had become very large in the past decades, even too large.