One year on: Ukraine and the world economy

weekend?The FT’s Weekend magazine has a special feature on the rise of the “second-hand economy”, with the pandemic driving a surge in demand for pre-owned goods. Plus, we look at the “unsung heroes” of the pandemic — the small businesses that kept going despite the odds.Today marks the one year anniversary of Russia\’s all-out assault on Ukraine. The conflict has had far-reaching consequences, both for Ukraine and the global economy. In terms of energy, Europe has become much less dependent on gas from Russia, while record oil and gas revenues have enabled Moscow to initially weather the cost of its campaign. Western sanctions continue to ratchet up, targeting hundreds of groups and individuals including Russian banks and defence companies. The war has also caused disruption to global supply chains, leading to a jump in global hunger. In Ukraine itself, the economic damage has been devastating, with GDP falling 30 per cent last year and the war effort costing it 35 per cent of GDP. The US and UK have offered support, but less than half of the financial aid pledged has actually reached Kyiv. As the FT editorial board points out, there are grounds for hope, and discussion is now starting about the postwar security guarantees Ukraine needs.

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