Russia's war on Ukraine to drop global trade growth by 2.4% in 2022

Posted on April 18, 2022   |  

The ongoing battle between Russia and Ukraine caused an intense blow to the global economy, reducing expected global trade growth for 2022 from 4.7% to 2.4-3%.

The crisis can reduce global GDP growth by 0.7-1.3% points, bringing it to between 3.1% and 3.7% in 2022.

The conflict increased prices for energy and food and reduced goods exports by Russia and Ukraine.

Europe will also experience the pressure of the economic impact as low shipments of grains will also raise the prices of farming goods.

Africa and the Middle East are the most vulnerable areas as they import over 50% of their grain demands from Ukraine and/or Russia, and in total, 35 African countries import food, and 22 countries import fertilizer from Ukraine, Russia, or both.