A year later, war in Ukraine is still affecting the world economy

This is not an isolated crisis, as the ripple effects of war are felt throughout the globe. The blockade of Ukrainian wheat exports has exacerbated the hunger situation in some of the world's most vulnerable regions.

A year after Russia invaded Ukraine, the global economy is still feeling the consequences.

There are less grain supplies, fertilizer and energy. There are also higher inflation and more economic uncertainty.

But no matter how bad the influence of war has been, it could have been worse.

Companies and countries in the developed world have been able to survive hardships.

In developing economies, however, the impact has been greater.

How's life inside Ukraine?

The ongoing conflict in Ukraine is causing extreme civil damage and is leaving millions without access to food, water, and other essential supplies.

Innocent civilians have been cruelly involved in the conflict, with nearly 19,000 victims since February 24th, 2022.

More than 8,000 people have been killed, but the actual number is likely to be much higher. Over 5.4 million have been displaced within the country.

There have been catastrophic damage to civil infrastructure, including hospitals and schools.

In recent winter months, families have sought refuge in damaged buildings that cannot withstand low temperatures or heavy snowfalls.

Infrastructural Attacks

Missile attacks have damaged 30-50% of Ukraine's power grid, and the total damage to energy infrastructure in Ukraine is estimated to reach at least $135.5 billion.

The destruction of water sources in particular has left some 16 million people unable to obtain drinking water or sanitation and endangered by contaminated waterborne diseases.

War in Ukraine has triggered the century's fastest forced flight to Europe, where most of the displaced are women and children.

Since November 2022, over 8 million refugees from Ukraine throughout Europe have been registered.

How does war in Ukraine affect the rest of the world?

In the United States and other developed countries, there has been an increase in consumer prices, caused in part by the impact of the war on oil prices. But the price increase has softened.

This has raised expectations that the US Federal Reserve will not raise interest rates. Higher interest rates could lead to recession.

China also lifted its serious zero restrictions - CO VID, late last year. Limitations had slowed the country's economic growth.

On the other hand, fortunately, a warm winter has helped lower natural gas prices and limit energy crisis damage, as Russia cut off on a large scale of gas for Europe.

In large or low, war is causing pain.

In Europe, for example, natural gas prices are still three times higher than they were before Russia began the invasion.

High food prices are especially affordable for poor population rates.

The war has affected exports of wheat, barley and cooking oil from Ukraine and Russia.

The two countries are the main suppliers for Africa, the Middle East and part of Asia, where many people struggle with hunger. Russia was also the main supplier of chemical waste.

In Nigeria, a leading importer of Russian wheat, average food prices rose 37% last year.

Bread prices have doubled in some places due to a lack of grain.

At least 40% of the bread ovens in the Nigerian capital Abuja were closed after the price of flour increased by about 200%.

In Spain, the government is spending 300m euros to help farmers buy fertilizer. The garbage prices have doubled since Russia's war in Ukraine.

In Indonesia's capital, Jakarta, many food dealers know that people cannot pay more money.

So some are selling smaller amounts for the same price, a practice known as “inflation cure” (rincflation).

All of this means a slowdown in the world economy.

International Monetary Fund perspective

The International Monetary Fund (FMN) lowered economic growth expectations for 2023.

The IMF says last year, prices rose 7.3% in the richest countries. That figure exceeded the January 2022 forecast of 3.9%.

Prices rose by 9.9% in poorer countries, worth 5.9% before the invasion.

What countries have been affected by war in Ukraine?

The global effects of war have had catastrophic effects on countries that already face conflicts and crises.

East Africa is facing a hunger crisis, as the region has faced a severe drought, along with the end of its supply of food caused by war in Ukraine.

Throughout the region, 21.7 million people cannot afford enough food, and 1.5 million children are at risk of malnutrition, which poses a threat to life.

Somalia is facing its worst drought in the past 40 years and is currently in the middle of the sixth season without rain.

This, combined with the impact of decades of conflict, has made the country dangerously dependent on imported cereals, especially Ukraine and Russia.

By mid - 2023, over 8 million people - almost half of the population - will experience a food uncertainty crisis, as the country will soon face severe hunger.

In the Middle East, war in Ukraine has caused spiral increases in wheat prices and fuel.

Syrian refugees are among the most affected, since many lack the income to cope with the cost of living that has risen dramatically.

Recently, the country has also been destroyed by a 7.8 - magnitude earthquake.

In Central America, prices for major corn foods are well above the average of five years.

Along with climate change and continued uncertainty, nearly 13 million people across the region are facing more and more hunger. Source Layer: VOA, International Rest Committee