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World Bank predicts 35% contraction for Ukraine’s economy in 2022

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War against Russia is the main cause of economic contraction in the country; BM says impacts should be felt in the long term

Genya SAVILOV / AFP

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Destruction caused by war is expected to generate long-term damage

O world Bank (BM) released a forecast that the economy of Ukraine will register a contraction of 35% this year as a result of the invasion of Russia. The estimate was presented by the Bank this Tuesday, 4th. According to the BM, the losses will be felt in the long term because of the “destruction of industrial capacity, damage to agricultural land and the reduction of the workforce, since more than 14 millions of people have been displaced”. In September, the Bank estimated that Ukraine’s economic recovery will require $350 billion, “which is more than 1.5 times the size of the pre-war Ukrainian economy.” At the time, the bank also said that this amount continues to increase. The BM estimates that the countries of Europe and Central Asia will register a contraction of 0.2% in the GDP this year. “The most affected countries will be those that depend moderately or heavily on imported gas (…), as well as countries very connected to the European energy market”, says the WB, which warns that countries must be prepared to face war supply restrictions .

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*With information from AFP

Source: Jovempan

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