Ukraine’s economy could shrink by up to 35% if the war continues: IMF

March 15, 2022 04:00 STI

Washington [US]Mar 15 (ANI): Ukraine’s economy is expected to shrink by 10% in 2022 following Russian military operations, Ukrainian media reported citing the International Monetary Fund report.
Ukraine’s government continues to function, the banking system is stable and debt payments are sustainable in the short term, the IMF said, Daily Sabah reported.
Sabah daily further reported that the report prepared ahead of the IMF’s approval of $1.4 billion in emergency financing, said Ukraine’s economic output could decline by 25% to 35 %, based on actual wartime Gross Domestic Product (GDP) data from Syria, Iraq, Lebanon and other war-torn countries.
“In 2022, Ukraine’s GDP will decrease by at least 10% if the war ends soon. If the war continues at the current rate, Ukraine could lose 25-35% of its GDP by the end of the year,” said The Kyiv. Independent report.
The country’s economy grew by 3.2% in 2021 amid a record grain harvest and strong consumer spending.
On February 24, Russia launched a special military operation in Ukraine after the people’s republics of Donetsk and Luhansk asked for help to defend themselves.
The Russian Defense Ministry said the special operation only targeted Ukrainian military infrastructure and the civilian population was not in danger.
The West, however, denies these Russian claims and in response, Western nations have imposed comprehensive sanctions on Moscow. In addition, they introduced sanctions against Belarus for supporting the Russian operation in Ukraine. (ANI)

Christi C. Elwood