Germany’s economy is extremely resilient and more than capable of withstanding the impact of a cut in gas supplies from Russia, according to the chief executive of the country’s top bank. While a complete halt to Russian gas deliveries would trigger a recession, Europe’s largest economy can weather the effects “as bad as they get,” Christian Sewing, CEO of Deutsche Bank AG, told the Frankfurter Allgemeine newspaper in an interview. Sonntagszeitung published. Saturday. “The economic resilience of our country is enormous, we should not underestimate that,” Sewing told the paper. “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 overcome this.” Sewing sounded the alarm about the potential impact of rising spending on households, saying “the brunt of the burden for many people is yet to come”. He warned that Germany’s annual inflation rate could exceed 10% if Russia stops producing natural gas altogether, 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,” Sewing said. ©2022 Bloomberg LP
