The first six weeks since the start of the full-scale invasion of Ukraine by the Russian Federation have caused at least USD 500 billion in damage to the country's economy. This will lead to the fact that in 2022 alone Ukraine's GDP will fall by 50%.
The Prime Minister of Ukraine Denys Shmyhal wrote about this in the column of The Economist.
He recalled that in 2021, Ukraine's GDP amounted to USD 200 billion. The performance of the country's economy was expected to be the highest in its history this year.
“On February 24th Vladimir Putin and his Russian army decided to wipe out those gains... During the first six weeks of the war, the total damage to Ukraine’s economy exceeded $500bn. According to government estimates, this figure could increase in the long run to $1trn, or five times last year’s GDP,” Shmyhal wrote.
The head of government stressed that this year alone the country's GDP may fall by 30-50%.
Shmyhal also noted that Russian aggression can cause a food crisis around the world, because Ukraine is one of the largest exporters of grain and sunflower oil.
As Ukrainian News Agency earlier reported, back in early March, experts from the International Monetary Fund (IMF) said that Russia's war against Ukraine had led to an increase in energy prices and agricultural products.
And today the World Bank published a report in which it said that the war in Ukraine will cause a "historic" rise in food and energy prices, which will remain high until the end of 2024.
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