The economic impact has reverberated through multiple channels, including commodity and financial markets, trade and migration links and adverse impact on confidence. The war has added to mounting concerns of a sharp global slowdown, surging inflation and debt, and a spike in poverty levels. “Ukraine needs massive financial support immediately as it struggles to keep its economy going and the government running to support Ukrainian citizens who are suffering and coping with an extreme situation.” The Russian invasion is delivering a massive blow to Ukraine’s economy and it has inflicted enormous damage to infrastructure,” said Anna Bjerde, World Bank Vice President for the Europe and Central Asia region.
“The magnitude of the humanitarian crisis unleashed by the war is staggering. Hit by unprecedented sanctions, Russia’s economy has already plunged into a deep recession with output projected to contract by 11.2 percent in 2022. Ukraine’s economy is expected to shrink by an estimated 45.1 percent this year, although the magnitude of the contraction will depend on the duration and intensity of the war.
This would be the second contraction in as many years, and twice as large as the pandemic-induced contraction in 2020. The region’s economy is now forecast to shrink by 4.1 percent this year, compared with the pre-war forecast of 3 percent growth, as the economic shocks from the war compound the ongoing impacts of the COVID-19 pandemic. WASHINGTON, Ap– The war against Ukraine and sanctions on Russia are hitting economies around the globe, with emerging market and developing countries in the Europe and Central Asia region expected to bear the brunt, says the World Bank’s latest Economic Update for the region, released today. Emerging economies in Europe and Central Asia also hit hard
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