OREANDA-NEWS. The German economy is currently experiencing a double crisis, said the Director General of the German Industrial Union (BDI) Joachim Lang, commenting on the new forecast for the economic development of the German government. In his opinion, Germany is faced with high energy prices and disruptions in international supply chains. Lang believes that a quick economic recovery in the current circumstances should not be expected.

Logically, the federal government has significantly lowered its economic outlook. Recovery in the short term is not expected. The country's industrial activity, foreign trade and investment are weakening, Lang said.

Earlier it was reported that Germany took a loan of €40 billion to mitigate the economic consequences due to the supply of weapons to Ukraine and rising energy prices. In this case, the amount of the country's new public debt will be €140 billion.

According to the Bundesbank, Germany's immediate refusal to import Russian gas could lead to a loss of €180 billion in GDP this year. According to the data of the German Central Bank, the continuation of the conflict in Ukraine and the imposition of an embargo on the supply of Russian energy resources will reduce the GDP growth rate by 5% from the forecast in 2022.

Meanwhile, Martin Wansleben, head of the Association of German Chambers of Commerce and Industry, said there was no justification for Germany to impose an embargo on Russian energy resources. It will be a disaster for the economy, which will be paralyzed, he said.