Ukraine economy forecast to shrink by nearly half this year

by Karen Faulkner, Worthy News Correspondent

(Worthy News) – Ukraine’s economy is forecast to shrink by a massive 45% this year, Radio Free Europe reports. The prediction was given by the World Bank on April 10, as Russia continues its devastating invasion of Ukraine.

The extent to which Ukraine’s economy decreases will depend on how long the war lasts, the World Bank noted. In a website statement, Anna Bjerde, World Bank vice president for the Europe and Central Asia region, said: “Ukraine’s economy is expected to shrink by nearly half (around 45 percent) this year, although the magnitude of the contraction will depend on the duration and intensity of the war.”

Bjerde noted that Russian forces have destroyed major Ukrainian industrial facilities and businesses. Moreover, in addition to bombing major Ukrainian cities, railways, bridges, and airports, Putin has destroyed Mariupol, an important port city on the Sea of Azov.

“The Russian invasion is delivering a massive blow to Ukraine’s economy and it has inflicted enormous damage to infrastructure,” Bjerde said.

Emphasizing that the vulnerable will be affected most, Bjerde added: “The war is causing severe damage to the economies of Ukraine and the rest of emerging and developing Europe and Central Asia, but the impacts are reverberating far beyond the region to every corner of the globe. The poorest and most vulnerable will be hit hardest. Soaring fertilizer, food, and energy prices will lead to greater poverty and hunger for many.”

Meanwhile, the World Bank expects Russia’s economy to shrink by a comparatively small 11 percent this year, amid Western sanctions.

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