War could destroy nearly half of Ukraine’s economy this year alone, World Bank says

War could destroy half of Ukraine’s economy 1:21 (CNN Business) –– Ukraine could lose nearly half of its economy this year due to Russia’s war, the World Bank has warned. In a report published this Sunday, the entity estimated that the country’s GDP could fall by 45.1% this year. Although he noted that “the magnitude of the contraction will depend on the duration and intensity of the war.” Since the invasion began, large swaths of Ukraine’s infrastructure have been devastated, with many bridges and neighborhoods damaged or destroyed. Some areas, including ports, have been besieged, while farmlands across the country have become battlefields. Ukraine was a leading exporter of wheat and sunflower oil before the war. Now the planting season is interrupted by the fighting. Farmers also face difficulties accessing machinery and other essential products that would normally arrive through Black Sea ports. Russia’s economy has already slipped into recession, with economic output expected to plunge 11.2% this year, the World Bank estimates. Emerging markets in Eastern Europe and Central Asia are also expected to be hit hard. Precisely, the expectation is that countries like Belarus, Moldova and Tajikistan enter a recession this year. “The magnitude of the humanitarian crisis that the war unleashed is staggering. The Russian invasion is dealing a heavy blow to Ukraine’s economy and has caused enormous damage to infrastructure,” said Anna Bjerde, World Bank Vice President for Europe. and Central Asia, in a statement. Could there be a ceasefire in Ukraine? 1:17″Ukraine needs massive financial support immediately, as it struggles to keep its economy and government afloat, with the aim of supporting Ukrainian citizens who are suffering and facing an extreme situation.” Ukrainian Finance Minister Serhii Marchenko stressed that the government is still functioning, despite the war. But, in a recent interview, he told CNN’s Julia Chatterley that about a third of his country’s economy was no longer operating as atrocities continued and millions fled as refugees to neighboring countries. By the end of March, an estimated 3 million people had lost their jobs, and preliminary estimates suggest the economy may have already lost an estimated $565 billion, Marchenko added. And he pointed to the massive destruction of Ukraine’s infrastructure. To keep the economy afloat, the government has relied on war bonds, as well as less traditional avenues such as cryptocurrency fundraising and non-fungible token (NFT) sales. “I think the true figures [de la pérdida económica total] would become clear only after the war,” the official added. “The [mejor] scenario is to end the war as quickly as possible,” he concluded.