Economic costs from ongoing crises have led to a loss of nearly one trillion euros for Germany since 2020, according to estimates by the Institute of the German Economy (IW).
The Institute of the German Economy (IW) reports that the economic costs of persistent crises in Germany have accumulated to nearly one trillion euros over the past six years, with an estimated loss in inflation-adjusted Gross Domestic Product (GDP) of 940 billion euros since 2020. The report indicates that each employed person has faced a loss of over 20,000 euros due to major events such as the COVID-19 pandemic, the impact of Russia's war against Ukraine, and confrontational U.S. policies.
Remarkably, a substantial portion of the total loss, approximately a quarter, is attributed to trade conflicts with the Trump administration, highlighting how external political decisions have exacerbated Germany's economic challenges. Official figures show that Germany narrowly avoided a third consecutive year without economic growth in 2025, underscoring the tough recovery that the economy is currently navigating.
The current decade has been characterized by unprecedented shocks and immense economic adjustment burdens that have significantly elevated the stress levels compared to previous crises. These ongoing challenges suggest that Germany's economic landscape may continue to face volatility, necessitating strategic adaptations and policies to mitigate further losses and promote growth.
