Russia’s unprovoked invasion of Ukraine has not only cost innocent lives; it has caused a reverberating global economic impact.
Russia’s aggression will cost the world $2.8 trillion, according to The Organisation for Economic Co-operation and Development’s (OECD) new report, “The Cost of War.”
“The world economy is slowing down. This is due to Russia’s out-of-the-box, unjustified, and criminal aggression against Ukraine. GDP growth has stopped in many countries, and judging by the data on the state of the economy, the slowdown will continue,” said Matthias Cormann, Secretary General of the OECD.
The volume of the world economy projected for 2023 would have otherwise been 2% higher. This equates to nearly one and a half times Russia’s GDP. In 2023, Russia’s GDP is expected to shrink 4.5%. In the U.S., growth is expected to be 0.5%, and in the Eurozone, 0.3%, according to the IHTT.
The oil crisis resulting from the war has contributed greatly to this negative economic impact. The EU’s upcoming December embargo on Russian oil will ban the shipping of raw Russian materials.
“As a result, the probability of interruptions in supplies on the world oil market will increase,” IHTT economists write. “The shortage of Russian oil products can cause serious economic damage. For example, this applies to diesel fuel in Europe. All these factors increase the risk that the cost of war for the world economy will be much higher than in the new forecast.”