The war on Ukraine will have a severe effect on economies far beyond the immediate area of the conflict, according to new research from the European Bank for Reconstruction and Development (EBRD), APA reports quoting boursier.com.

Ukraine’s GDP had been forecast to grow by 3.5 per cent this year, and Russia’s by 3 per cent.

Describing the effects of the war as ‘the greatest supply shock since at least the early 1970s,’ the Bank predicts that the increased cost for commodities such as food, oil, gas and metals will have a profound impact on economies, particularly those in lower income countries. Russia and Ukraine supply a disproportionately high share of commodities, including wheat, corn, fertiliser, titanium and nickel.

The EBRD expects Ukraine’s GDP to fall by 20 per cent this year and Russia’s by 10 per cent.

Source: Azeri-Press News Agency