​The German economy will lose more than €260 billion in added value by 2030 due to the war in Ukraine and skyrocketing energy prices, which will also have a negative impact on the labor market, according to a study published on Tuesday by the Employment Institute. Research, reports Reuters.

Compared to expectations for a peaceful Europe, Germany’s gross domestic product will be 1.7% lower in 2023 and employment will be around 240,000 fewer, according to a study published on Tuesday.

Employment is expected to remain at this level until 2026, when the expansionary measures will gradually start to offset the negative effects and lead to an increase in employment of about 60,000 people in 2030.

One of the big losers will be the hotel industry, which has already been hit hard by the coronavirus pandemic and is likely to also feel the impact of reduced consumer spending power.

Energy-intensive sectors such as the chemical industry and metal production may also be particularly affected.

According to the study, if energy prices, which have so far risen by 160 percent, were to double again, Germany’s economic output in 2023 would be almost 4 percent lower than it would have been without the war.

Under these assumptions, 660,000 fewer people will be employed three years from now, and another 60,000 fewer in 2030, according to the study.