The World Bank issued dire forecasts for Ukraine and Russia this year in the wake of the war, warning that the outlook could become even bleaker if the conflict drags on.
Ukraine’s economy will collapse 45.1% this year, the bank predicted, much worse than the 10% to 35% slowdown predicted by the IMF last month. Russia’s GDP is expected to fall by 11.2%
In a more pessimistic scenario, which reflects an escalation of the conflict, there would be a greater negative impact on the euro zone, increased Western sanctions and a financial shock due to the erosion of confidence.
The region’s economy would shrink by almost 9% – worse than the 2008 global financial crisis – with Russia shrinking 20% and Ukraine collapsing 75%, the report said.
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What happened overnight
Asian stocks fell on Monday, while the euro edged higher as the far right lost the first round of the French presidential election.
The Japanese Nikkei fell 0.6pc after losing 2.6pc last week, while Chinese blue chips lost 1.8pc.
- Company: Sirius Real Estate (commercial statement)
- Economy: GDP (UK)industrial production (UK)manufacturing (UK)consumer price index (China)