German Business Leaders Fear War in Ukraine Could Lead to a Recession

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Business leaders in Germany are increasingly worried about the impact Russia’s war in Ukraine will have on the German economy, Europe’s largest, where inflation, disrupted supply chains and the high price of energy are leading to fears of a recession.

Across the country, industrial sectors including manufacturing and steel and chemical production are being forced to idle plants and furlough workers, some of whom only recently returned after coronavirus-related shutdowns. The moves are driving fears that the longer the war continues, the more it could upend Germany’s globalized, export-focused economy.

A survey of business sentiment on Tuesday reflected the uncertainty, registering its largest month-to-month drop since 1991. The monthly indicator of economic sentiment by the Center for European Economic Research, based in Mannheim, plunged 93.6 points, to negative 39.3 points for March.

“A recession is becoming increasingly likely,” said Achim…

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