Economics
Ukraine Conflict May Knock $1 Trillion Off Global GDP
- NIESR warns economic hit to Europe almost as bad as Russia
- Debt levels to rise and rate rises to be more gradual
The central square outside the damaged local city hall of Kharkiv on March 1.
Photographer: Sergey Bobok/AFP/Getty ImagesThis article is for subscribers only.
The conflict in Ukraine could knock $1 trillion off the value of the world economy and add 3% to global inflation this year by triggering another supply chain crisis, according to the U.K.’s National Institute for Economic and Social Research.
Supply problems will slow growth and drive up prices, reducing the level of global gross domestic product about 1 percentage point by 2023, the London-based researcher said. Europe’s ties to Russia and Ukraine, which are major sources of commodities and energy, leave it more exposed than any other region.