Ukraine war to add 3% to global inflation in 2022

Posted on March 14, 2022   |  

  • The war could erase the global GDP by 1% or $1tn (£750bn) off the world's GDP by next year, UK's GDP growth may reduce by 0.8% to 4% in 2022 and 0.5% in 2023, and inflation to average 7% this year and 4.4% in the next year.
  • Global markets are bracing for more supply chain chaos due to Russia and Ukraine's key role in energy and commodity trade, from oil and gas to wheat, corn, and palladium which would fuel global inflation and posed a risk to economic growth.
  • Higher oil and gas prices will mitigate the impact of sanctions on Russia, the country will acquire 1.5% of GDP this year and more than 2.5% by the end of 2023.
  • The crisis will drive food prices higher after wheat hit $10.23 a bushel, which is a 14-year high, corn prices rose to the highest level since 2012.
  • Russia and Ukraine, account for 20% of the global wheat and corn market, the Kremlin is also the biggest exporter of ammonium nitrate, which is used in fertilizer.



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