Germany Crisis Losses Near €1 Trillion
Germany crisis losses have reached almost €1 trillion since 2020, a new study says.
The German Economic Institute estimates losses at about €940 billion over six years. Researchers measured the impact on price adjusted GDP. They linked the decline to several major shocks.
Pandemic, War, and Trade Tensions Hit Growth
First, the Covid-19 pandemic disrupted businesses and jobs. Then, Russia’s war in Ukraine pushed up energy prices. In addition, confrontational US trade policies added pressure.
Together, these events reduced economic output across the country. On average, each employee lost more than €20,000 in value added. That figure reflects slower growth and weaker productivity.
Last Year Caused a Quarter of Total Losses
However, the study shows that 2025 alone caused about one-quarter of the losses. Trade disputes with the US created fresh uncertainty. As a result, companies delayed investments and hiring.
Growth remained fragile throughout the year. Official data shows the economy grew just 0.2% in 2025. That small rise helped Germany avoid a third year without growth.
Current Decade Worse Than Past Crises
Researchers say this decade’s shocks are larger than past downturns. For example, the stagnation from 2001 to 2004 cost about €360 billion.
The 2008-09 financial crisis caused losses near €525 billion. However, the current total already exceeds both periods. Experts compared actual growth with a scenario without these crises. They assumed the economy would follow its long term trend.
Gap Keeps Growing
The results show a widening gap between reality and that trend. Germany’s output has not surpassed 2019 levels for three years. Therefore, losses continue to rise each year. Experts warn that long term stagnation could slow recovery further.
