The extent of the decline in GDP is highly uncertain and depends on the duration and intensity of the war, the Bank said.
In 2022, Ukraine’s GDP will decline by 45.1% due to the war Russia unleashed against it. This is stated in the World Bank report on the economy of the region of Europe and Central Asia, published on Sunday, April 10, Reuters wrote.
“Even without the destruction of physical infrastructure, output in Ukraine is expected to decline by 45.1% in 2022. The size of the reduction, however, is highly uncertain and depends on the duration and intensity of the war,” the document said.
It was noted that the Russian invasion led to the closure of businesses, reduction in exports and destruction of production facilities.
The Bank reported that, depending on the duration of the war, the share of the population of Ukraine, which is below the current level of subsistence, could reach 70% by the end of this year.
At the same time, Russia’s economy is expected to fall by 11.2% due to sanctions imposed against it.
“The strong impact of the imposed sanctions is expected to lead to a reduction in Russia’s GDP of 11.2% in 2022, which is largely due to a reduction in domestic demand,” WB experts said and added that a sharp reduction in investment is also expected.by 17%.
It is reported that 2.6 million Russians will be below the poverty line.
Finally, analysts found that, against the backdrop of war as a whole, in the Europe and Central Asia region in 2022, output will decline by 4.1%, which is twice the economic collapse in 2020 associated with the COVID pandemic. -19.
Recall that the Ukrainian government has imposed a complete embargo on trade with Russia. Today the import of goods from the Russian Federation into the customs territory of Ukraine is prohibited.
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Source: korrespondent
