The global economy will lose $1T due to the war in Ukraine.

This year, the world’s economy will lose $1T because of the Russian Federation’s invasion of Ukraine, reported The Economist. According to the latest forecast, the hostilities in Ukraine will continue at least until the end of the year. Because of this, global economic growth expectations have deteriorated by 1.1% to 2.8% in annual terms. Thus, the war reduced this year’s global GDP forecast by $1 trillion. It is noted that other organizations are also predicting a similar decline. The IMF cut its global growth forecast for the year by 1.2% from its initial estimate in January to 3.2%. Among the G20 countries, Russia will suffer the most. By the end of 2022, the impact of sanctions will cause the Russian economy to sink by 10% compared to the initial growth estimate of 2.6%. The Ukrainian economy will suffer an even greater blow. In April, the World Bank estimated that it will decrease by 45% this year.