The Impact of War on Businesses: Energy Dependence and Price Increases

The article presents the results of an ongoing business survey conducted by the German Business Panel on the economic effects of the war in Ukraine. Current developments are weighing on the outlook of German companies and are leading to restraint in investment and hiring decisions. More than half of the surveyed firms report that they either use natural gas directly in production or would experience supply chain disruptions in the event of gas rationing. Price increases, reflected in the current high inflation rate, represent a direct response to cost pressures arising particularly from rising energy prices and supply chain disturbances.

Wirtschaftsdienst, 102(9)