German Energy-Intensive Industries Decline 15.2% Since Ukraine War
Germany’s energy-intensive industries saw a 15.2% production drop and 6.3% employment decline from February 2022 to March 2024. This is due to increased energy costs following Russia’s invasion of Ukraine, contributing to broader economic stagnation.
Germany’s energy-intensive industries have experienced a 15.2 percent fall in production between February 2022 and March 2024, according to Destatis. This decline, affecting sectors like chemicals, metal processing, glass, and paper production, is attributed to Russia slashing gas supplies to Europe after its 2022 invasion of Ukraine, which significantly increased power costs for German industry.
Employment in these sectors also decreased by 6.3 percent, with over 53,000 fewer people employed by March 2024. This contributes to a broader stagnation in Germany’s economy, which faces manufacturing slumps, weak export demand, and US tariffs. The economy ministry warned of a significant setback in the second quarter due to rising prices, supply chain issues, and uncertainty, with the outlook dependent on the persistence of the Middle East conflict.