As a result of the Russian war of aggression, Ukraine’s economic output will fall by almost half this year, according to a World Bank forecast. The World Bank announced yesterday that the Gross Domestic Product (GDP) will fall by about 45 percent compared to the previous year.
However, the organization qualified that “the extent of the economic recession” would depend “on the duration and intensity of the war”.
In January, that is, before the start of the war at the end of February, the World Bank had predicted economic growth of around 3% for Ukraine.
“Devastating” Effects
“Many aspects of Ukraine’s economy are collapsing,” the World Bank said. The impact of war, flight and displacement on poverty in Ukraine would also likely be “devastating”, he said.
Measured against the statistical poverty line of $5.50 a day for countries with comparable income, the proportion of Ukraine’s population living in poverty is expected to skyrocket from 1.8% to 19.8%, the World Bank warned.
Need immediate support
“The scale of the humanitarian crisis triggered by the war is staggering,” said World Bank Vice President for Europe and Central Asia Anna Bjerde. Ukraine needs “massive financial support immediately”, demanded Bjerde.