economy Ukraine It will drop to 45% this year as a result of the Russian occupation.while Russia The forecaster predicts this Sunday will pull back 11% as Belarus and Moldova enter recession. World Bank (WB).
The Washington-based institution has released an update of its economic forecasts for the region, stating that the war in Ukraine has affected world economies. Particular impact on developing countries in Europe and Central Asia.
The World Bank calculates that the economy of the entire region will shrink by 4.1% this year.A marked change from the pre-war estimate of 3% growth in Europe and Central Asia.
This regional recession will be “as big as caused by the pandemic”The report explains that this will be due to the “economic blows” from the war, in addition to the consequences the coronavirus crisis still has.
Again, this does not mean that all countries in that broad area will individually experience a recession.: Only Ukraine, Russia, Belarus, Moldova, Kyrgyzstan and Tajikistan, whose economies will shrink, show the World Bank.
“The rest will grow at an anemic rate” He draws attention to the report, which does not provide specific data on Spain.
By 2023, the gross domestic product (GDP) of all of Europe and Central Asia is expected to increase. “Expand shy of 2.5%” adds the document.
In the case of Ukraine, the World Bank calculates that its economy could shrink by 45.1% this year, but it makes clear just how big the recession is. “It will depend on the length and intensity of the battle.”
This forecast beats the International Monetary Fund’s (IMF) forecast less than a month ago, which warned that Ukraine’s economy could fall by as much as 35% this year if the conflict continues. most exodus and the destruction of its productive capacity.
“Ukraine urgently needs massive financial support “To keep its economy and government going, and to support the citizens of Ukraine who are suffering and struggling with an extreme situation,” said Anna Bjerde, the World Bank’s Vice President for Europe and Central Asia.
The World Bank also predicted Russia’s economy to contract “up to 11.2% in 2022”As a result, it entered a “deep recession”. “Unprecedented Sanctions” imposed by the United States and its allies in Europe and other countries
Belarus will see its economy shrink 6.5% and Moldova 0.4%Ukraine’s neighbors Poland and Romania will grow by 3.9% and 1.9%, respectively.
Since the war began, World Bank launches $925 million emergency financing package for UkraineIt will be realized within the framework of an aid plan that is currently under preparation and amounting to 3,000 million dollars.