A report prepared by the National Institute for Economic and Social Research showed that the war in Ukraine added 3 percent to global inflation this year, in addition to wiping out trillions of global GDP by 2023, according to the report, the war could wipe out 1 percent of global GDP, the equivalent of $1 trillion, by next year.
The director of the National Institute of Economic and Social Research, Professor Jajit Chadha, noted that “the inflation cycle may be inflamed further if central banks, which is likely, choose to avoid the scourge of war through its monetary policies, which would fuel global inflation, and that poses a threat to economic growth.”
"While higher oil and gas prices would partially mitigate the impact of sanctions on Russia, GDP will still contract by 1.5 percent this year and more than 2.5 percent by the end of 2023," he said. Europe is expected to be the hardest-hit region due to its trade links and dependence on Russian energy and food supplies, with emerging markets affected to a lesser extent than advanced economies." He pointed out that "it is expected to increase public spending to support the massive influx of asylum seekers from Ukraine and to boost military spending, which will limit the negative effects on European GDP."
Source (Al-Arabiya.net Website, Edited)
