Ukraine’s economy to collapse amid Russia invasion’

12 April 2022, 2:14 pm
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The World Bank issued dire forecasts for Ukraine as Russia’s invasion impacts both the country and its neighbors, warning in a report released Sunday of an even bleaker economic outlook if the conflict drags on.

Ukraine’s economy will collapse by 45.1 percent this year, the bank predicted, far worse than the 10 percent to 35 percent downturn the IMF projected last month.

Russia will see an 11.2 percent decline in GDP, and the World Bank said the entire region is suffering economic consequences from the war, which began in late February and has caused more than four million Ukrainians to flee to Poland, Romania and Moldova.

The conflict also has caused prices of grains and energy to soar.

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 told reporters.