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War to slash Ukraine’s GDP output by over 45%, World Bank forecasts -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – A rescuer is seen standing on the rubble from a building that was destroyed by Russian bombing as they begin to search for victims. This happened during Russia’s Invasion in Ukraine. It took place in Borodyanka (Kyiv Region, Ukraine), April 10, 2022. REUTERS/Zohra Bensemra

WASHINGTON, (Reuters) – Ukraine’s economy will probably contract by a shocking 45.1% in the coming year, as Russia’s invasion of Ukraine has shut down businesses and slashed exports, and damaged productive capacity. This was according to the World Bank’s new assessment on the economic effects of war.

A World Bank forecast that Russia’s 2022 GDP production will fall by 11.2% because of the sanctions financial imposed on Russia by the United States, its Western allies and banks.

Due to trade disruptions and shocks, the World Bank’s Eastern Europe Region, which includes Ukraine, Belarus, and Moldova, will see a contraction in GDP of 30% this year.

According to the World Bank, Ukraine’s business sector is now closed in half, with the remaining businesses operating well below normal capacities. Black Sea shipping to Ukraine from Ukraine has been closed for 90% and 50% of total grain exports.

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