The consequences of the war in Ukraine will be felt all over the world/getty images
The war between Russia and Ukraine caused not only a humanitarian crisis, but also a serious blow to the global economy.
This is the conclusion made by the World Trade Organization. They stressed that despite the fact that Ukraine suffered the brunt of the destruction, the consequences, such as a reduction in trade, will be felt by people around the world.
First of all, we are talking about raising food and energy prices and reducing availability of goods exported by Russia and Ukraine.
Global GDP growth
- The crisis could reduce global GDP growth by 0.7 to 1.3 percentage points, resulting in growth between 3.1 and 3.7% in 2022.
- Global trade growth could slow this year almost doubled from 4.7% predicted by the WTO in October last year to 2.4 – 3%.
The WTO noted that, despite the small share of Russia and Ukraine in world trade and production , countries are important suppliers of food and energy.
In 2019, we supplied about 25% of world wheat consumption, 15% of barley and 45% of sunflower, the report says.
The consequences for Europe will be felt
Some regions will feel the impact of the war more strongly , than others. Europe, the main destination for both Russian and Ukrainian exports, is likely to be hit the hardest.
Declining supplies of grain and other products will lead to higher prices for agricultural products.
Africa and the Middle East are the most vulnerable regions, as they import more than 50% of their grains from Ukraine and/or Russia, the organization said.
35 African countries import food and 22 countries import fertilizers from Ukraine, Russia or both countries. In some sub-Saharan African countries, wheat prices could rise by 50 to 85% as a result of the war.
One of the long-term risks is that war could trigger world economy into separate blocks. – added to the WTO.
