Lagatar24 Desk
Washington, April 11: The World Bank made gloomy predictions for Ukraine as Russia’s invasion has an impact on both the country and its neighbours, warning that if the conflict continues, the economic outlook would become considerably worse.
According to the bank, Ukraine’s GDP will contract by 45.1 percent this year, significantly more than the IMF’s prediction of a 10% to 35% contraction last month. The World Bank estimates that the war, which began in late February and has forced more than four million Ukrainians to flee to Poland, Romania, and Moldova, will inflict an 11.2 percent drop in GDP in Russia. Grain and energy prices have also risen as a result of the conflict.
“The results of our analysis are very sobering. Our forecasts show that the Russian invasion in Ukraine has reversed the region’s recovery from the pandemic,” said Anna Bjerde, World Bank vice president for Europe and Central Asia.
“This is the second major shock to hit the regional economy in two years and comes at a very precarious time for the region, as many economies were still struggling to recover from the pandemic,” she added.
Meanwhile, emerging and developing countries in Europe and Central Asia are expected to decline by 4.1 percent this year, a significant reversal from the three percent growth forecast before the war and twice as terrible as the pandemic-induced recession in 2020, according to Washington-based institutes.
