German economy takes battering amid Russia-Ukraine crisis as crippling inflation returns

German economy takes battering amid Russia-Ukraine crisis as crippling inflation returns

Although Russian energy exports have not yet been blocked Germany did take the step of halting approval for the long awaited Nord Stream 2 pipeline connecting the continent with Russia.

In addition both Russia and Ukraine are among the world’s top producers of wheat providing a further strain to food prices.

Escalating tensions with Russia could also worsen issues with global supply chains, which have already suffered severe stretching as economies have emerged from the pandemic.

Mike Thornton, head of manufacturing at consultancy RSM, said: “Russia is a major exporter of natural resources including palladium, platinum, gold, oil, gas and aluminium which could put further tension on supply chains.

Published at Tue, 01 Mar 2022 14:44:27 +0000