German institutions warn that the German economy will be hit hard if Russian gas supplies are cut off.

According to a joint economic forecast by five leading German economic research institutes, in the event of an immediate cessation of Russian gas supplies, Germany's total production in 2022 and 2023 would be at risk of 220 billion euros, equivalent to more than 6.5% of Germany's annual production.

Institutions cut 2022 GDP growth to 2.7% from 4.8% due to the ongoing war in Ukraine and its economic fallout and expect inflation to reach 6.1% in 2022, the highest in 40 years .

The Joint Economic Forecast was prepared by the German Institute for Eco­nomic Research (DIW Berlin), the ifo Institute (Munich), the Kiel Institute for the World Economy (IfW Kiel), the Halle Institute for Economic Research (IWH), and RWI (Essen).