China News Agency, Washington, October 4 (Reporter Sha Hanting) A report released by the World Bank on the 4th local time showed that due to the conflict between Russia and Ukraine, Ukraine's economy is expected to shrink by 35% in 2022.
The World Bank released an updated economic forecast report for Europe and Central Asia on the same day.
The World Bank expects Ukraine's economy to shrink by 35% in 2022, up from a 45.1% contraction expected in June.
The World Bank also expects the Ukrainian economy to grow by 3.3 percent in 2023, but the forecast is highly uncertain and will depend heavily on the development of the Russian-Ukrainian conflict.
The report also said that the conflict between Russia and Ukraine destroyed many factories and farmland in Ukraine, resulting in the forced relocation of millions of Ukrainians.
According to World Bank estimates, rebuilding Ukraine will require at least $349 billion, equivalent to 1.5 times Ukraine's total economic output in 2021.
As the conflict between Russia and Ukraine continues, Ukraine still needs "substantial" economic assistance, as does Ukraine's post-war reconstruction and economic recovery, Anna Bjerde, World Bank vice-president for Europe and Central Asia, said in the report. Huge assistance is required.
In addition, the report expects Russia’s economy to shrink by 4.5% in 2022, up from an 8.9% contraction expected in June.
The report shows that the Russian economy is more "resilient" than previously forecast, and higher crude oil and natural gas prices are also helping the Russian economy to a certain extent.
The report also expects the Russian economy to shrink by 3.6% in 2023.
The World Bank also expects that, as a result of the conflict between Russia and Ukraine, the economy of Europe and Central Asia will shrink by 0.2% in 2022 and is expected to grow by 0.3% in 2023.
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