According to a study released Friday by the German Institute for Labor Market and Occupation Research (IAB), Russia's war in Ukraine could cut Germany's economic growth rate by more than half in 2022.
The German government's latest forecasts for late January show growth is projected at 3.6 percent this year, up from 2.9 percent last year.
The IAB also expects inflation to rise to 7 percent amid soaring energy prices. The government's forecast for January is 3.3 percent.
"Low-income households, in particular, should receive energy cost subsidies." Enzo Weber, one of the authors of the study, told the media.
However, if imports of Russian gas, oil and coal were stopped, the blow to economic growth would double and inflation would rise to 10 percent, he said.