World Bank Retains Forecast For Ukraine’s GDP Fall Of 45.1% In 2022

The World Bank has maintained its forecast for Ukraine's GDP to fall by 45.1% in 2022.

This is evidenced by the bank's data, Ukrainian News Agency reports.

At the same time, Ukraine’s GDP is expected to grow by 2.1% next year, and by 5.8% in 2024.

Russia's GDP is expected to fall by 8.9% this year, 2.2% next year, and 2.2% growth is expected in 2024.

It is noted that Russia's invasion of Ukraine has exacerbated the slowdown in the global economy, which is entering a long period of weak growth and rising inflation.

Global economic growth is expected to fall from 5.7% in 2021 to 2.9% in 2022, well below the 4.1% expected in January.

This pace will fluctuate over 2023-24 as the war in Ukraine disrupts near-term activities, investment and trade, pent-up demand subsides and fiscal and monetary policy comes to a halt.

The war in Ukraine has also led to a sharp rise in prices for a wide range of energy products.

Higher energy prices will lower real incomes, raise production costs, tighten financial conditions, and dampen macroeconomic policies, especially in energy-importing countries.

As Ukrainian News Agency earlier reported, the European Bank for Reconstruction and Development expects Ukraine's GDP to fall by 20% instead of growing by 3.5% in 2022.

The World Bank published a report saying that the war in Ukraine will cause a "historic" surge in food and energy prices, which will remain high until the end of 2024.

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