04-10-2022, 01:49 PM
"World Bank: War to slash Ukraine GDP by 45%
The World Bank says Ukraine's economy will contract by 45.1% this year as a result of the Russian invasion.
Businesses in the country have been shut, exports have been slashed, and much of the country's productive capacity has been destroyed, the organisation explained in an impact assessment released on Sunday.
In particular the closure of Black Sea shipping from Ukraine has cut off 90% of the country's grain exports and half of its total exports, which is expected to have knock-on affects across the globe, but particularly in the Middle East and Northern Africa.
Russia's GDP will drop by 11.2% as a result of financial sanctions, the World Bank added."
All in all, not great news. Just shows once again (if anyone doubted it) how insane this war is. For Ukraine, the economics are dire. They can hang on for a while through great courage, sacrifice, and outside help, but at some point it just doesn't work. Ukraine needs a way to victory. This going on for years isn't feasible.
For Russia, 11.2% is bad but tolerable. Hopefully the sanctions will cause more substantial decreases in the near future. That said, the fact that the EU is still paying Russia a billion a day for gas just has to stop. If Europe is serious about helping Ukraine, this has to be done today. As I have said before, the US needs to pressure the EU (especially Germany) to cut off the money tap. The US also needs to do what is needed to allow the Europeans to do this, even if it means substantial pain here in the USA. Collective security also means collective responsibility. Somebody in the West needs to stand up and lead. Hopefully, it will be the US, because it seems improbable anybody else will.
The World Bank says Ukraine's economy will contract by 45.1% this year as a result of the Russian invasion.
Businesses in the country have been shut, exports have been slashed, and much of the country's productive capacity has been destroyed, the organisation explained in an impact assessment released on Sunday.
In particular the closure of Black Sea shipping from Ukraine has cut off 90% of the country's grain exports and half of its total exports, which is expected to have knock-on affects across the globe, but particularly in the Middle East and Northern Africa.
Russia's GDP will drop by 11.2% as a result of financial sanctions, the World Bank added."
All in all, not great news. Just shows once again (if anyone doubted it) how insane this war is. For Ukraine, the economics are dire. They can hang on for a while through great courage, sacrifice, and outside help, but at some point it just doesn't work. Ukraine needs a way to victory. This going on for years isn't feasible.
For Russia, 11.2% is bad but tolerable. Hopefully the sanctions will cause more substantial decreases in the near future. That said, the fact that the EU is still paying Russia a billion a day for gas just has to stop. If Europe is serious about helping Ukraine, this has to be done today. As I have said before, the US needs to pressure the EU (especially Germany) to cut off the money tap. The US also needs to do what is needed to allow the Europeans to do this, even if it means substantial pain here in the USA. Collective security also means collective responsibility. Somebody in the West needs to stand up and lead. Hopefully, it will be the US, because it seems improbable anybody else will.