• News
  • Sport
  • TV
  • Radio
  • Education
  • TV Licences
  • Contact Us
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • FEATURES
  • OPINION
No Result
View All Result
1
Home Business

War to slash Ukraine’s GDP output by over 45%, World Bank forecasts

11 April 2022, 3:18 AM  |
Reuters Reuters |  @SABCNews
Logo of World Bank seen on the wall.

Logo of World Bank seen on the wall.

Image: Reuters

Logo of World Bank seen on the wall.

Ukraine’s economic output will likely contract by a staggering 45.1% this year as Russia’s invasion has shuttered businesses, slashed exports and rendered economic activity impossible in large swaths of the country, the World Bank said on Sunday in a new report.

The World Bank also forecast Russia’s 2022 GDP output to fall 11.2% due to punishing financial sanctions imposed by the United States and its Western allies on Russia’s banks, state-owned enterprises and other institutions.

The World Bank’s “War in the Region” economic update said the Eastern Europe region, comprising Ukraine, Belarus and Moldova, is forecast to show a GDP contraction of 30.7% this year, due to shocks from the war and disruption of trade.

Growth in 2022 in the Central Europe region, comprising Bulgaria, Croatia, Hungary, Poland and Romania, will be cut to 3.5% from 4.7% previously due to the influx of refugees, higher commodity prices and deteriorating confidence hurting demand.

For Ukraine, the World Bank report estimates that over half of the country’s businesses are closed, while others still open are operating at well under normal capacity. The closure of Black Sea shipping from Ukraine has cut off some 90% of the country’s grain exports and half of its total exports.

The World Bank said the war has rendered economic activity impossible in large swaths of the country, and is disrupting agricultural planting and harvest operations.

Estimates of infrastructure damage exceeding $100 billion by early March – about two-thirds of Ukraine’s 2019 GDP – are well out of date “as the war has raged on and caused further damage.”

The bank said the 45.1% contraction estimate excludes the impact of physical infrastructure destruction, but said this would scar future economic output, along with the outflow of Ukrainian refugees to other countries.

The World Bank said the magnitude of Ukraine’s contraction is “subject to a high degree of uncertainty” over the war’s duration and intensity.

“The Russian invasion is delivering a massive blow to Ukraine’s economy and it has inflicted enormous damage to infrastructure,” Anna Bjerde, the World Bank’s vice president for Europe and Central Asia, said in a statement. “Ukraine needs massive financial support immediately as it struggles to keep its economy going and the government running to support Ukrainian citizens who are suffering and coping with an extreme situation.”

The World Bank has already marshaled about $923 million in loans and grants for Ukraine, and is preparing a further support package of more than $2 billion.

The aid has helped Ukraine pay salaries for essential workers and make pension and sovereign debt payments, despite drastically reduced tax revenues, World Bank officials said.

Share article
Tags: World Bank
Previous Post

Box Office: ‘Sonic 2’ Booms to $71 Million, Michael Bay’s ‘Ambulance’ Stalls

Next Post

Woods can contend again says U.S. Open champion Rahm

Related Posts

File image: Stakeholders meeting at Kliptown SAPS to talk about the incident that happened at Maponya Mall in Soweto on Friday.

Transport sector needs proper regulation to help drive economy: Economist

3 June 2023, 6:47 PM
North West province

Four North West municipalities placed under financial rescue

3 June 2023, 10:00 AM
An Eskom power station seen at night.

Higher stages of load shedding don’t suggest a grid collapse: Ramokgopa

2 June 2023, 9:00 PM
New Development Bank head office

New Development Bank making good progress: Pandor

2 June 2023, 4:32 PM

New project will add 274 MW to the grid: Ramokgopa

2 June 2023, 3:07 PM
Two workers on a rooftop installing solar panels.

Presidential Climate Commission highlights urgency of renewable energy

2 June 2023, 9:39 AM
Next Post
Tiger Woods celebrating

Woods can contend again says U.S. Open champion Rahm

Most Viewed

  • 24hrs
  • Week
  • Month
  • Deadline for Zimbabwean Exemption Permits draws near
  • Eastern Cape ActionSA raises eyebrows over qualifications of senior officials
  • Durban’s N2 road, Spaghetti Junction closed due to cleanup operations
  • Limpopo healthcare set to get massive boost with multi-billion rand hospital
  • Scientist finds solution to extending life of power plants’ rotors
  • Dr Nandipha’s looks during court appearances under the spotlight
  • Deadline for Zimbabwean Exemption Permits draws near
  • Reserve Bank expected to increase repo rate on Thursday
  • Zimbabwe receives 18 helicopters from Russian Federation
  • Eastern Cape ActionSA raises eyebrows over qualifications of senior officials
  • DA joins call for Mabuyane’s resignation
  • Cele repeats call for police to take tough action against criminals
  • Eskom reinstates rolling blackouts after brief reprieve
  • Two suspects arrested in connection with murder of MUT lecturer
  • Mashaba secures new publisher for his book after Mashele funding furore

LATEST

A sign warning of an accident ahead.
  • South Africa

Death toll climbs to eight after shooting at Glebelands Hostel in Umlazi


Tunisian Ons Jabeur speaks to Serbia's Olga Danilovic after their third round match.
  • Sport

Jabeur upset with fans reselling tickets due to women’s match in night session


Medical staff wait to treat patients
  • Cholera outbreak
  • South Africa

Cholera death toll rises to 26


Paris St Germain's Kylian Mbappe celebrates scoring their second goal. Soccer Football - Ligue 1 - Paris St Germain v AS Monaco - Parc des Princes, Paris, France - December 12, 2021.
  • Sport

Mbappe targets Ligue 1 scoring record with PSG next season


A health worker walks between beds.
  • South Africa

NW Health MEC accuses management at Mahikeng Provincial Hospital of negligence


Passenger train went off the tracks and hit another one near the district of Balasore in the eastern state of Odisha.
  • World

Families, rescuers search for victims of India’s worst train crash in decades


Weather

  • About the SABC
  • Contact Us
  • Jobs
  • Advertise
  • Disclaimer
  • Site Map

SABC © 2023

No Result
View All Result
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • FEATURES
  • OPINION

© 2023

Previous Box Office: ‘Sonic 2’ Booms to $71 Million, Michael Bay’s ‘Ambulance’ Stalls
Next Tiger Woods celebrating Woods can contend again says U.S. Open champion Rahm