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German economy threatened by war in Ukraine, chancellor says
From Inke Kappeler
German Chancellor Olaf Scholz speaks during a press conference with the King of Jordan following talks at the Chancellery in Berlin, Germany, on March 15. (Hannibal Hanschke/AFP/Getty Images)
The war in Ukraine, paired with the sanctions against Russia, pose a threat to the German economy, German Chancellor Olaf Scholz said at a joint press conference with Jordanian King Abdullah II.
"We must understand very well that this Ukraine war also brings challenges for us regarding economic consequences of the sanctions," Scholz said on Tuesday in Berlin. Some countries are expressing concerns about food security because of delivery shortfalls from Russia and Ukraine, Scholz said.
"We have to make sure that our economy goes well through these difficult times," he added.
Germany has the largest economy in Europe.
Scholz and King Abdullah condemned the war in Ukraine and called on Russian President Vladimir Putin "to stop all combat operations immediately and withdraw his invasion troops." Scholz reiterated the willingness for talks to end the war.
“A recession is becoming more and more likely,” warned economic research institute ZEW on its website on Tuesday. The war in Ukraine and the sanctions against Russia are significantly dampening the economic outlook for Germany," it said.
The institute marked the “biggest drop in economic expectations ever” for Germany. The ZEW started monitoring Germany's economic development in December 1991.
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