Russia severed natural gas flow through the Nord Stream 1 pipeline earlier this month, citing mechanical issues as the country continues its invasion of Ukraine. Germany — the continent’s largest economy — relied upon Russian natural gas for 55% of its imports as of last year and has since witnessed wholesale energy prices increase twentyfold.
As a result, the producer price index for industrial products has risen 45.8% year-over-year as of August 2022, according to data from the Federal Statistical Office of Germany, which followed increases of 37.2% in July 2022 and 32.7% in June 2022.
Several firms are therefore pausing production in factories or laying off employees. ArcelorMittal, the world’s second-largest steelmaker, is switching off one of its two furnaces in Bremen, Germany. – READ MORE