The DC-based lender’s economic update for emerging markets in Europe and Central Asia said the conflict would hamper the region’s industrial output, shaving 4.1 percent off its GDP.
World Bank HQ. (Photo: Getty Images)
The World Bank expects the Ukrainian economy to shrink by 45.1 percent this year as a result of the Russian military operation, while Russia will see its economy contract by 11.2 percent in the same period.
The DC-based lender’s economic update for emerging markets in Europe and Central Asia said the conflict would hamper the region’s industrial output, shaving 4.1 percent off its GDP.
“The region’s economy is now forecast to shrink by 4.1 percent this year, compared with the pre-war forecast of 3 percent growth, as the economic shocks from the war compound the ongoing impacts of the COVID-19 pandemic,” the update released on Sunday said.
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In addition to Russia and Ukraine, Belarus, Kyrgyzstan, Moldova, and Tajikistan are all projected to fall into recession this year due to spillovers from the conflict, weaker-than-expected growth in the euro area, and trade shocks.
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