German government interventions and a mild European winter have cushioned the blow of the war and its consequences, but Europe’s largest economy is likely heading for a recession. The war in Ukraine and the growing energy prices have cost the German economy about 2.5% of its GDP. While the impact milder than expected, the country still faces a minor recession. Looking ahead, the Bundesbank said German economic output was likely to decline slightly on average in 2023, but that it was expected to do a little better than the 0.5% fall in GDP predicted in December.Is the war in Ukraine too costly for no good reason ?
