Germany’s economy is extremely resilient and more than capable of withstanding the effects of a cut in gas supplies from Russia, according to Deutsche Bank’s chief executive.
Although a complete stoppage of Russian gas deliveries would cause a recession, Europe’s biggest economy can deal with the effects “no matter how bad things get,” Christian Scheving said in an interview with the Frankfurter Allgemeine Sonntagszeitung published today.
“The economic resilience of our country is enormous, we should not underestimate that,” Scheving told the newspaper. “This also applies to our resistance forces in the financial sector, for which we banks are jointly responsible,” he added. “I am convinced that if we work together, the German economy can succeed.”
Saving sounded the alarm about the potential impact of soaring costs on households, saying “the biggest burden for many people is yet to come”. He warned that Germany’s annual inflation rate could exceed 10% if Russia completely stopped gas deliveries, up from 8.5% this month.
“If monthly expenses are greater than income, people will consume less and the mood in the country will also deteriorate,” he added.
Source: Capital
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