The website of the German "Business Daily" reported that the Ukrainian conflict has caused a short-term impact on the overall economy, but the impact on some industries is long-term, and the business expectations of the German economic community are deteriorating significantly. The results of a survey of 25,000 companies by the German Chamber of Commerce and Industry (DIHK) showed that a third of companies expect their business to deteriorate in the next 12 months, while only 19% expect an improvement. Martin Wansleben, director general of DIHK, said that such a decline in confidence had only occurred during the financial crisis and the first blockade of the epidemic in 2020, and German GDP is expected to grow by a maximum of 1% to 1.5% this year. The shock of the conflict in Ukraine is developing into a structural crisis that will burden the German economy for several years. On the one hand, the COVID-19 outbreak has directly affected the service industry, which recovered rapidly after the restrictions were lifted. On the other hand, the current crisis has particularly hit the manufacturing industry, with 37% of industrial companies expecting a decline in business in the next 12 months, and only 14% expecting a decline. Improvement, construction is more pessimistic. 93% of industrial companies see energy and raw material prices as the biggest risk, and rising prices will affect many companies in the coming months. According to the Association of Small and Medium Enterprises, two-thirds of German companies have signed energy contracts of one to three years. Even early next year, the burden of high energy prices will not be felt very much, but then it will be hit across the board. Basic industries are energy-intensive, and industry-specific financial problems have risen sharply, with 29 percent of chemical companies reporting financial distress, compared with 36 percent in rubber and plastics and 41 percent in metals. Energy price shocks have sparked debate around basic industries. A full climate transition requires a lot of hydrogen. Experience shows that companies often choose to stay close to energy suppliers to minimise transport costs. Some industries will no longer be competitive by then, potentially forcing some basic industries are withdrawn from Germany.