April 11, 2022
2 mins read

War to halve Ukraine’s economy

Ukraine’s economy is expected to shrink by an estimated 45.1 per cent this year, “although the magnitude of the contraction will depend on the duration and intensity” of the conflict…reports Asian Lite News

As a result of Moscow’s ongoing war on Kiev, Ukraine’s economy is expected to shrink by 45.1 per cent this year, and Russia’s economy is projected to contract by 11.2 per cent, the World Bank has projected.

The war and the subsequent sanctions on Russia are hitting economies around the globe, with emerging markets and developing countries in the Europe and Central Asia region expected to bear the brunt, Xinhua news agency reported citing the newly-released World Bank’s Economic Update for the region.

The economy in the region’s emerging markets and developing countries is now forecast to shrink by 4.1 per cent this year, compared with the pre-conflict forecast of a 3 per cent growth as the economic shocks from the conflict compound the ongoing impacts of the Covid-19 pandemic, the update revealed, noting that the contraction is twice as large as the pandemic-induced contraction in 2020.

Ukraine’s economy is expected to shrink by an estimated 45.1 per cent this year, “although the magnitude of the contraction will depend on the duration and intensity” of the conflict, it noted.

Hit by unprecedented sanctions, Russia’s economy has already plunged into a “deep recession” with output projected to contract by 11.2 per cent in 2022, according to the update.

In addition to Russia and Ukraine, Belarus, Kyrgyzstan, Moldova and Tajikistan are projected to fall into recession this year, while growth projections have been downgraded in all economies due to spillovers from the conflict, weaker-than-expected growth in the euro area, and commodity, trade and financing shocks.

The Ukraine crisis and the pandemic “have once again shown that crises can cause widespread economic damage and set back years of per capita income and development gains”, said Asli Demirguc-Kunt, World Bank chief economist for Europe and Central Asia.

She urged governments in the region to fortify their macroeconomic buffers and credibility of their policies to contain risks and deal with potential fragmentation of trade and investment channels, strengthen their social safety nets to protect the most vulnerable, including the refugees, and not to lose focus on improving energy efficiency to ensure a sustainable future.

ALSO READ: Bucha massacre generates parallel perceptions

Previous Story

Covid-19 puts B’desh ‘health’ in peril

Next Story

Pak National Assembly session begins to elect new PM

Latest from -Top News

Relief for Students: US Visa Cancellations Paused

More than 1,500 student visas have been cancelled so far…reports Asian Lite News The United States on Friday abruptly paused the cancellation of student visas issued to international students, according to reports.

Yunus Must Be Treated Like Hasina, Warn Islamists

Islamist group made these warnings to the interim government, terming the women’s reform body proposals as “anti-Islamic…reports Asian Lite News The radical Islamist group in Bangladesh, Hefazat-e-Islam, has issued a threat, stating

UN: Bring Pahalgam Terrorists to Justice

The members of the Security Council “stressed that those responsible for these killings should be held accountable..reports Asian Lite News The Security Council has “condemned in the strongest terms” the Pahalgam terrorist

Vatican Hosts Final Rites for Pope Francis

The Argentine-born pontiff, the first from Latin America, died less than a month after returning home from a prolonged five-week hospitalisation for double pneumonia….reports Asian Lite News In an outpouring of global
Go toTop

Don't Miss

EU leaders grant Ukraine, Moldova EU candidate status

The country handed its application on February 28. Moldova applied

Ukraine thwarts Russian cyber attack

This attempted attack involved a wide variety of malware….reports Asian