The energy shock caused by Russia’s invasion of Ukraine has led to the biggest collapse in German living standards since the second world war and a downturn in economic output comparable to the 2008 financial crisis, a stark assessment has found.
In a joint paper designed to underline the depth of the economic crisis in Europe’s erstwhile powerhouse, two former economic advisers to the German government have said that real wages in the country slumped further in 2022 than in any year since 1950.
