The World Bank forecasts a serious economic decline in Ukraine

The military campaign that the President Russia Vladimir Putin’s launch in Ukraine will cut Ukraine’s economy by nearly half – or 45.1% – this year, while Russia will shrink 11.2%, according to the World Bank.

The World Bank said in its spring forecast released on April 10 that emerging market and developing economies in Europe and Central Asia are expected to contract a combined 4.1% this year, double the drop due to the outbreak of the COVID-19 pandemic in 2020. The World Bank notes, estimates are subject to considerable uncertainty.

“This is the second major shock to the region’s economy in two years and comes at a very precarious time for the region, as many economies are still struggling to recover from the pandemic.” – Bloomberg quoted World Bank Regional Vice President Anna Bjerde as saying in an online conference.

In addition to emerging markets in Europe, the conflict in Ukraine is affecting financial and commodity markets, as well as trade and migration links, adding to concerns about an economic slowdown, according to the World Bank. global economy, rising inflation and growing debt.

Outside Russia and UkraineThe economies of Belarus, Kyrgyzstan, Tajikistan and Moldova are also forecast to contract in 2022, while the rest of the region grows at an “anemic” rate, according to the report.