The Strategist

World Bank forecasts Ukraine's GDP to fall by 45.1%

04/11/2022 - 10:20

The World Bank has released a report with economic estimates for Europe and Central Asia.

500 Hryven Ukraine's Banknote. Photo by Yelyzaveta Serhiienko via flickr
500 Hryven Ukraine's Banknote. Photo by Yelyzaveta Serhiienko via flickr
Ukraine's GDP may fall by 45.4 percent in 2022 as a result of the conflict, while Russia's GDP may fall by 11.2 percent. According to the World Bank's latest economic estimate, emerging markets and countries in Europe and Central Asia will bear the brunt of the impacts of the war in Ukraine and sanctions against Russia (WB).

Its estimates show that the region's GDP will contract by 4.1 percent in 2022, Russia's - by 11.2 percent, and Ukraine's - by 45.1 percent.

In a conference call, World Bank Vice President for Europe and Central Asia Anne Bjerde remarked, "This is the second huge shock to hit the regional economy in two years, and it comes at a very risky time for the area as many countries are still attempting to recover from the pandemic."

Bjerde's comments regarding the staggering scope of the humanitarian disaster, as well as the massive hit to Ukraine's economy and infrastructure, were cited in the World Bank study. "Ukraine urgently requires substantial financial assistance," Bjerde stated.

Since February 24, the World Bank has provided $925 million in emergency finance to Ukraine, as part of a $3 billion aid package that will be delivered to the country in the following months.



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