Price rise and financial upheaval: how war in Ukraine harm the world economy

Despite the fact that the fighting is taking place directly in our country, the European Union's economy is also losses through Russia. The full -scale invasion of the Russian Federation into Ukraine has seriously shaken the position of the world economy and has inflated inflation throughout Europe.

At the same time, the large -scale crisis is still ahead, reports Reuters, referring to the research of the Swiss National Bank, as journalists write, since Russia invaded Ukraine in February 2022, energy has been increasing in Europe, and financial markets have been increasing almost constantly. This situation also affected the economy of the continent - it began to decline.

The analysis of the impact of war on the economy of Germany, the United Kingdom, France, Italy and Switzerland shows that in the fourth quarter of 2022 the production volume would be 0. 1-0. 7% higher without war in Ukraine. And the inflation rate in each of these countries would be 0. 2-0. 4% lower "negative consequences of the war will probably be much more serious in the medium-term and long term, especially for the real economy.

In one to two years, this effect is likely to be , it will be about twice as high, "the report reads. It is noted that in economic consequences, Germany was most affected by the EU countries. Thus, in the fourth quarter of 2022, the country's GDP would be 0. 7% higher, and inflation would be 0. 4% lower in the fourth quarter, if it were not for Moscow's decision to attack Ukraine. The United Kingdom was also severely affected: economic production decreased by 0. 7%and inflation increased by 0. 2%.

If it wasn't for war, inflation would be 0. 3% lower in France and GDP would be 0. 1% higher, while in Italy, inflation would be 0. 2% lower and GDP would be 0. 3% higher . Without the GDP of Switzerland, it would be 0. 3% higher than the current indicators, and inflation would be 0. 4% lower.

By the way, in July 2023, the International Monetary Fund reported that the world economy is already being restored from the crisis provoked by Russia, banning gas supply to a number of European countries after invasion of Ukraine. The main financier of the IMF Pierre-Olivier stated that the activity in trade returned to the level of the pre-core period, and the signs of economic activity in the first quarter of this year indicate that the global economy has become stable.