The World Bank believes Ukraine’s economy is set to shrink by almost half this year due to Russia’s invasion
The COVID-19 crisis caused profound disruptions in the global economy, hitting almost every single country in the world.
The World Bank believes Russia’s invasion will cause more economic damage across eastern Europe and parts of Asia than the coronavirus pandemic.
The conflict in Ukraine has shut half of the country’s businesses and slashed exports
It said the closure of Black Sea shipping from Ukraine had cut off some 90 per cent of the country’s grain exports and half of its total exports.
So the country, already in crisis mode needs “massive financial support immediately” – this is according to the world bank’s VP.
Ukraine is the world’s biggest exporter of sunflower oil and the shutdown of exports has affected global food prices, surging at the fastest pace ever seen,
In fact the U.N says world food costs climbed to fresh record in March, contributing to the global inflation and hunger crisis.
I might add too though, the food price rally is felt most in poor countries where groceries make up a large share of consumer budgets.
So the fallout from Russia’s invasion has sent costs of basic foods like bread soaring
Unfortunately this is all alarming news, elevating the humanitarian crisis unleashed by the war.
Will it get worse? Well that depends how long the conflict continues but considering recovery efforts are still ongoing for covid 3 years on, the worst is yet to come from an economic standpoint
