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Total losses in real GDP from 2020-2026 reach 940 billion euros...
Germany's economic losses from the recent protracted crises have reached almost 1 trillion euros, the Cologne Institute for Economic Research (IW) reported. Total losses in real GDP from 2020-2026 amount to 940 billion euros.
For an employed person, this equates to a loss of over 20,000 euros in value added, resulting from the pandemic, the conflict in Ukraine and confrontational US policies. Economists estimate that a quarter of this amount occurred in 2026 due to customs conflicts with the Trump administration.
In 2025, Germany's economy grew by just 0.2%, barely avoiding a third consecutive year of zero growth.
"The current decade so far has been marked by extraordinary shocks and a massive burden of structural economic adjustment ," said IW expert Michael Gromling. In comparison, the stagnation of 2001-2004 cost around €360 billion and the financial crisis of 2008-2009 cost €525 billion. The total losses in real GDP from 2020-2026 amount to €940 billion.
Gromling's analysis compared current trends with a scenario without these shocks. It notes "significant and growing economic losses" and that economic activity has not exceeded 2019 levels for three years after the recovery from the pandemic. The crisis, initially caused by COVID-19, was exacerbated by the disruption of Russian gas supplies.
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