Business Journal

Economy

Ukraine’s Economy to Shrink by 50% in 2022-World Bank

Ukrainian refugees on Lviv railway station waiting for train to escape to Europe. Photo: Ruslan Lytvyn/ Shutterstock

The war in Ukraine has triggered a catastrophic humanitarian crisis and threatened the stability of geopolitical relations.

Economic output in the Europe and Central Asia (ECA) region is forecast to contract by more than 4.1% in 2022—the second major shock and regional recession in two years. Moreover, the war has added to mounting concerns of a sharp global growth slowdown.

Ukraine’s economy was hit hardest and is expected to shrink by an estimated 45.1% this year, although the magnitude of the contraction will depend on the duration and intensity of the war.

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