Russia's war against Ukraine has seriously shaken the global economy and accelerated inflation in Europe. However, a larger crisis is yet to come. Policymakers around the world are grappling with curbing inflation and supporting economic recovery in times of crisis.
This was reported by Reuters, citing a study by the Swiss National Bank
An analysis of the impact of the war on the economies of Germany, the United Kingdom, France, Italy, and Switzerland shows that in the fourth quarter of 2022, output would have been 0.1-0.7% higher without the war in Ukraine. And the inflation rate in each of these countries would be 0.2-0.4% lower
"The negative consequences of the war are likely to be much more severe in the medium and long term, especially in relation to the real economy. In one to two years, this effect is likely to be about twice as large," the report says.
It is noted that in terms of economic consequences, Germany suffered the most among the EU countries. Thus, in the fourth quarter of 2022, the country's GDP would have been 0.7% higher, and inflation would have been 0.4% lower in the fourth quarter, if not for Moscow's decision to attack Ukraine.
The UK was also hit hard, with economic output falling by 0.7% and inflation rising by 0.2%.
Earlier it was reported that Russia's invasion of Ukraine would cost the global economy$2.8 trillion in lost production by the end of next year — if a harsh winter leads to energy shortages in Europe.