Ukraine and russia conflict 20202/1/2024 Economies reliant on oil imports will see wider fiscal and trade deficits and more inflation pressure, though some exporters such as those in the Middle East and Africa may benefit from higher prices. Food costs have jumped, with wheat, for which Ukraine and Russia make up 30 percent of global exports, reaching a record.īeyond global spillovers, countries with direct trade, tourism, and financial exposures will feel additional pressures. Russia and Ukraine are major commodities producers, and disruptions have caused global prices to soar, especially for oil and natural gas. And three, reduced business confidence and higher investor uncertainty will weigh on asset prices, tightening financial conditions and potentially spurring capital outflows from emerging markets. Two, neighboring economies in particular will grapple with disrupted trade, supply chains, and remittances as well as an historic surge in refugee flows. One, higher prices for commodities like food and energy will push up inflation further, in turn eroding the value of incomes and weighing on demand. Impacts will flow through three main channels. The conflict is a major blow to the global economy that will hurt growth and raise prices.īeyond the suffering and humanitarian crisis from Russia’s invasion of Ukraine, the entire global economy will feel the effects of slower growth and faster inflation.
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |