War to slash Ukraines GDP output by over 45%, World Bank forecasts

div classBodysc17zpet90 cdBBJodivpWASHINGTON Reuters – Ukraine‘s economic output will likely contract by a staggering 45.1 this year as Russia’s invasion has shuttered businesses, slashed exports and destroyed productive capacity, the World Bank said on Sunday in a new assessment of the wars economic impacts.p

pThe World Bank also forecast Russia‘s 2022 GDP output to fall 11.2 due to punishing financial sanctions imposed by the United States and its Western allies on Russia’s banks, stateowned enterprises and other institutions.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe World Banks Eastern Europe region, comprising Ukraine, Belarus and Moldova, is forecast to show a GDP contraction of 30.7 this year, due to shocks from the war and disruption of trade.p

pFor Ukraine, the World Bank report estimates that over half of the country‘s businesses are closed, while others still open are operating at well under normal capacity. The closure of Black Sea shipping from Ukraine has cut off some 90 of the country’s grain exports and half of its total exports. p

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pp Reporting by David Lawder in Washington Editing by Matthew Lewisp

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