The Deutsche Bundesbank (Buba) said in its monthly report on Friday it expects the country's GDP to decline nearly 2% in 2022 if the Ukraine conflict escalates and Berlin suspends Russian energy imports.
The central bank added that a further escalation in Ukraine would also cause a "significant" rise in inflation, particularly when it comes to energy prices. "The abrupt end of Russian energy supplies would probably significantly hamper domestic production," the bank warned. "Experts assume that the use of natural gas, hard coal and mineral oil in the affected sectors will decrease by 40% from the second quarter of 2022 for the rest of the year
Earlier, German Chancellor Olaf Scholz spoke against an embargo on Russian oil, insisting such a move would not "stop the war."
