Powerful Blow: How Russian Aggression Affects Global Economy?

A new crisis caused by the biggest war in Europe since World War II could hit the wallets of not only Ukrainians but also residents of many countries around the world, including the EU and the USA, according to the Ukrainian Crisis Media Centre and Centre for European Values.

In particular, experts note that according to the World Bank, the size of the Ukrainian economy does not exceed 0.2% of world GDP and 0.3% of world exports. That is, it is a country with a small economy, which theoretically could not significantly affect the world crisis. However, the world is already experiencing the consequences of the war unleashed by Russia. In the EU, inflation has accelerated significantly since the beginning of the year.

For example, in the Czech Republic, September annual inflation reached 18%. Prices for utilities and food products have increased. In some developing countries, there is a large shortage of food because Ukraine was a major supplier of grain crops and oil for them. Despite the fact that the agricultural industry is a developed industry for the countries of Europe and America, this will not improve the situation. After all, these countries mainly work to provide their market. Grain crops were grown in excess in Ukraine, which were then exported, in particular, to African countries.

“Even in the U.S., which has a fairly stable and strong economy, the impact of the war is tangible. The country is going through a raw material crisis caused by the shutdown of production in Ukraine and the imposition of sanctions on the aggressor country. However, the biggest economic blow, apart from Ukraine, awaits the European Union and Great Britain. Due to their proximity, these countries had stronger trade relations with Ukraine. They now host the most Ukrainian refugees, and some countries were also dependent on Russian gas and oil,” the analysts said.

Natalia Tolub