## Germany is on Track to Meeting its Gas Saving Target _IMF News, August 12, 2022_ ## Source details **Canonical URL:** [Germany is on Track to Meeting its Gas Saving Target](https://www.imf.org/en/news/articles/2022/08/11/cf-germany-on-track-to-meet-gas-saving-target) ## Other formats - [Markdown version](/en/news/articles/2022/08/11/cf-germany-on-track-to-meet-gas-saving-target/index.md) - [Structured JSON version](/en/news/articles/2022/08/11/cf-germany-on-track-to-meet-gas-saving-target/index.json) - [Bundle manifest](/en/news/articles/2022/08/11/cf-germany-on-track-to-meet-gas-saving-target/bundle-manifest.json) ## Bibliographic details - Authors: Yushu Chen, Galen Sher August - Published: August 12, 2022 --- ### Summary of the situation - A partial shutoff of Russian gas would reduce gross domestic product by almost 3 percent next year and raise inflation significantly, with effects potentially worse if the winter is particularly cold. - Germany, like other European Union member states, agreed to cut gas consumption by 15 percent between August 2022 and March 2023 to avoid gas shortages and spiraling prices. - Germany is already on track to achieve the 15 percent target: gas consumption was down by about 17 percent in May, 8 percent in June and 15 percent in July compared with averages of the past five years. ### Drivers of the decline in gas consumption - Temperature unlikely to be the main explanation: the number of “heating degree days” was similar in June and July to the same months in previous years. - Soaring energy costs appear to be the primary cause: - Gas prices for businesses in June were up by 267 percent compared with the previous five years. - Large industrial users, including carmakers, are making especially severe cuts and switching to renewable energy where possible. ### Economic impacts observed and projected - Short-term costs from gas saving: - Manufacturing and services activity contracted in July for the first time in two years, according to purchasing managers’ surveys. - IMF growth projections for Germany (revised down due in large part to higher energy costs): - 1.2 percent in 2022 - 0.8 percent in 2023 ### Policy measures and recommendations - Government action: - The Federal Cabinet on August 4 approved a temporary levy that will encourage gas savings by raising prices paid by households (and businesses) from October. - The government indicated an intention to accompany the levy with additional relief to households, which should ideally take the form of targeted income support. - IMF-suggested measures to increase gas savings and reduce economic strain: - Compensate users for reducing gas consumption. - Establish programs to exchange gas heaters for electric heat pumps. - Rationale: - Higher household gas savings would relieve firms from some pressure to save gas, enabling burden-sharing that could lower the risk of a recession. ### Authors - By Yushu Chen and Galen Sher - August 12, 2022 *Source: IMF web page "Germany is on Track to Meeting its Gas Saving Target" by Yushu Chen and Galen Sher, August 12, 2022.* --- ## References - [https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus) - [https://www.imf.org/en/publications/weo](https://www.imf.org/en/publications/weo) - [Global Economy in Crosscurrents of War and Technology](https://www.imf.org/en/publications/weo/issues/2026/07/08/world-economic-outlook-update-july-2026) - [https://www.imf.org/en/publications/gfsr](https://www.imf.org/en/publications/gfsr) - [Global Financial Markets Confront the War in the Middle East and Amplification Risks](https://www.imf.org/en/publications/gfsr/issues/2026/04/14/global-financial-stability-report-april-2026) - [https://www.imf.org/en/publications/fm](https://www.imf.org/en/publications/fm) - [Fiscal Policy under Pressure: High Debt, Rising Risks](https://www.imf.org/en/publications/fm/issues/2026/04/15/fiscal-monitor-april-2026) - [https://www.imf.org/en/publications/reo](https://www.imf.org/en/publications/reo) - [Asia and Pacific](https://www.imf.org/en/publications/reo/apac) - [Europe](https://www.imf.org/en/publications/reo/eu) - [Middle East and Central Asia](https://www.imf.org/en/publications/reo/meca) - [Sub-Saharan Africa](https://www.imf.org/en/publications/reo/ssa) - [Western Hemisphere](https://www.imf.org/en/publications/reo/wh) - [https://www.imf.org/en/publications/areb](https://www.imf.org/en/publications/areb) - [Getting to Growth in an Age of Uncertainty](https://www.imf.org/en/publications/areb/issues/2025/09/24/annual-report-2025) - [More Publications](https://www.imf.org/en/publications) - [Germany Faces Weaker Growth Amid Energy Concerns](https://www.imf.org/en/News/Articles/2022/07/21/cf-germany-faces-weaker-growth-amid-energy-concerns) - [The Economic Impacts on Germany of a Potential Russian Gas Shutoff](https://www.imf.org/en/Publications/WP/Issues/2022/07/18/The-Economic-Impacts-on-Germany-of-a-Potential-Russian-Gas-Shutoff-520931) - [How Europe Can Protect the Poor from Surging Energy Prices](https://blogs.imf.org/2022/08/03/how-europe-can-protect-the-poor-from-surging-energy-prices/) - [Germany’s](https://www.imf.org/en/Countries/DEU) - [projections for Germany’s economic growth](https://www.imf.org/en/Publications/WEO/Issues/2022/07/26/world-economic-outlook-update-july-2022) - [staff report](https://www.imf.org/en/Publications/CR/Issues/2021/07/14/Germany-2021-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-the-462176) - [https://www.imf.org/en/home](https://www.imf.org/en/home) _Source: https://www.imf.org/en/news/articles/2022/08/11/cf-germany-on-track-to-meet-gas-saving-target_