As per the recent predictions by World Bank, the Ukrainian economy will be collapsed by 45% in the ongoing year. This percentage is a result of the Russian military invasion, which has obliterated the pace of development in the war-hit country.
Although, it is being said that the loss to the Ukrainian economy will depend on how long the war between both countries will continue.
Anna Bjerde – the World Bank Vice President for Europe and Central Asia, while speaking on the current scenario, stated, “Ukraine requires massive financial support instantly 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.”
On the other hand, as per the predictions estimated for Russia, the country’s economy will be contracted by 11% during the ongoing fiscal year.
In addition to this, World Bank predicted that the output of the emerging market and developing nations in Europe and Central Asia region would be shrunk by 4.1% in 2022, which was earlier estimated to rise by 3% (before the war).
Statement of World Bank cites, “The war has counted to scaling concerns of a sharp global slowdown, surging inflation & debt, and a spike in poverty levels. The economic impact has reverberated through multiple channels, including – commodity and financial markets, trade and migration links and adverse impact on confidence.”
The ongoing war between Russia-Ukraine will have a huge impact on the world economies and is likely to witness a decline in the projections for the global economy by the International Monetary Fund – IMF.
IMF has lowered the projections for the global growth for the ongoing year to 4.4%.
Asli Demirguc-Kunt – World Bank chief economist for Europe and Central Asia, said, “The Governments in the region should strengthen their macroeconomic buffers and credibility of their policies to contain risks and deal with possible fragmentation of trade & investment channels; strengthen their social safety nets to protect the most vulnerable, including the refugees; and not lose focus on enhancing energy efficiency to ensure a sustainable future.”