In addition to bombing the industrial and agricultural regions, Russia has blockaded Ukraine’s major Black Sea ports, making it extremely dangerous for shipping vessels carrying grain and other products.
After 55 days of an unprovoked war launched by Russian dictator Vladimir Putin it became clear that costs incurred on global economy are enormous. The longer the war will last the more it devastate the fragile, post-pandemic global economy recovery.
The World Bank lowered its annual global growth forecast for 2022 on Monday by nearly a full percentage point, down from 4.1% to 3.2%, citing the impact that Russia’s invasion of Ukraine is having on the world economy.
World Bank President David Malpass told reporters on a conference call that the largest single factor in the reduced growth forecast was a projected economic contraction of 4.1 per cent across Europe and Central Asia.
Other factors behind the slowdown in growth from January’s forecast include higher food and fuel costs being borne by consumers in developed economies across the world, stated Mr. Malpass.
These are partly the result of Western sanctions on Russian energy, which have driven up the price of oil and gas worldwide. Supply disruptions to Ukrainian agricultural exports are also cited as contributing factors to pushing prices higher.
Russia has blockaded Ukraine’s major Black Sea ports, making it extremely dangerous for shipping vessels carrying grain and other products to travel the key maritime pathway connecting Ukraine to the rest of the world.
Russian-made damage to the Ukrainian economy "gigantic"
The World Bank is preparing for a continued crisis response, given the multiple crises, Malpass told reporters. Over the next few weeks, I expect to discuss with our board, a new 15-month crisis response envelope of around $170 billion to cover April 2022 through June 2023, he added.
The damage to the Ukrainian economy is staggering, gigantic compared to global contraction, stated a World Bank official. Earlier this month, the World Bank projected that Ukraine’s annual GDP would fall by 45.1 per cent, an astonishing figure for a country of more than 40 million people.