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

US, EU slam China’s war games near Taiwan

US President Donald Trump underscored the need to maintain peace in the Taiwan Strait, advocating for a diplomatic approach to cross-strait tensions while warning against the use of force The United States

£13.9 billion of R&D fund to boost innovation, jobs

Funding outlined to support transformational R&D in areas like life sciences, green energy, engineering and beyond More UK innovators like those developing treatment-transforming dementia tests or building world-leading testing facilities to power

OPEC+ accelerates oil output hikes

Despite the production boost, the group emphasised that future adjustments remain flexible and could be paused or reversed depending on market conditions. Eight OPEC+ nations have unexpectedly decided to accelerate their oil

ATM 2025 set for record turnout

Registrations have surged by an impressive 104% compared to the same period last year, underscoring ATM’s growing influence in the international travel trade landscape. With just three weeks to go until the

UAE team aids Myanmar relief efforts

The search and rescue operation will take place across six locations in Myanmar, with teams working in rotating morning and evening shifts to expedite response efforts and reach as many affected areas
Go toTop

Don't Miss

Zelensky rules out talks with Moscow

Zelensky emphasised that there is no confidence that the Russian

First batch of Keralites arrives from Ukraine

The parents of several students were seen hugging their children