- The World Bank sees Ukraine’s gross domestic product (GDP) likely plummeting 45.1 per cent this year as the country’s economic activity is savaged by the war with Russia
- Meanwhile, Russia is expected to see its GDP sink by 11.2 per cent on the back of sanctions introduced from Western countries
- An influx of refugees and higher commodity prices are tipped to drive down GDP growth in the Central Europe region to 3.5 per cent
- The World Bank has made calls for financial support for Ukraine in order to keep its economy going
- It has so far gathered $923 million in loans and grants for the country and is preparing an additional support package worth $2 billion
The World Bank has forecast Ukraine’s gross domestic product (GDP) will likely plummet 45.1 per cent this year as the country’s economic activity is savaged by Russia’s invasion.
The estimate excludes the destruction of infrastructure, which will likely damage future economic output, and does not take into account the outflow of refugees to other countries.
More than half of Ukraine’s businesses are expected to be closed, with others operating at significantly less capacity.
The Black Sea has been cut off from shipping, which has affected 90 per cent of grain exports and half of its total exports.
Russia’s GDP is also forecast to slump – by 11.2 per cent – on the back of sanctions introduced from Western countries.
The effects also flow on to the Eastern European region, according to the World Bank.
Ukraine, Belarus and Moldova were predicted to suffer for a combined 30.7 per cent GDP contraction.
An influx of refugees and higher commodity prices were expected to drive down GDP growth in the Central Europe region to 3.5 per cent.
The World Bank has made calls for financial support for Ukraine in order to keep its economy going.
It has already gathered $923 million in loans and grants for the country and is preparing an additional support package worth $2 billion.