How much has German economy losses?
Germany has incurred economic losses approaching €1 trillion (around $1.18 trillion) as a result of a series of overlapping crises over recent years, according to estimates by the German Institute of Economic Research (IW).
The figures highlight the cumulative toll of global shocks that have weighed heavily on Europe’s largest economy since the start of the decade.
IW estimates that between 2020 and 2025, Germany’s accumulated losses in real GDP reached approximately €940 billion.
This sharp decline reflects the prolonged impact of multiple disruptions, beginning with the Covid-19 pandemic, followed by the economic consequences of the Russia–Ukraine war, and compounded by rising global trade tensions, particularly the confrontational trade policies of the United States, which included the imposition of tariffs on numerous countries.
On an individual level, the institute notes that when these losses are distributed across the workforce, they translate into a loss in value added exceeding €20,000 per employee.
This underscores how deeply the crises have affected productivity, incomes, and overall economic output.
According to Michael Grumling, a researcher at the IW Institute, who described the current decade as being shaped by “extraordinary shocks and enormous economic adjustment burdens”.
He emphasized that the scale and persistence of these disruptions now surpass the economic impact of previous crises, forcing Germany to adapt simultaneously to supply chain disruptions, energy price shocks, inflationary pressures, and structural changes in global trade.
For comparison, IW data show that earlier downturns were significantly less costly.
The recession between 2001 and 2004 resulted in estimated losses of around €360 billion, while the global financial crisis of 2008–2009 led to value-added losses of roughly €525 billion.
By contrast, the combined crises of the current decade have already far exceeded those figures, both in magnitude and duration.
The findings illustrate the unprecedented economic strain Germany has faced in recent years and raise concerns about long-term growth prospects, competitiveness, and the pace of recovery as the country continues to navigate an uncertain global economic environment.
