Insight

Russia/Ukraine conflict: the economics of war

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31 March 2022

Russia/Ukraine conflict: the economics of war

Report summary

Russia’s invasion of Ukraine on 24 February, the escalating conflict and subsequent sanctions on Russia by Western countries and their allies have rocked the global economy. The destruction caused by the war has Ukraine heading for a deep economic contraction in 2022. In Russia, the economic picture is deteriorating too with the squeeze of sanctions. The global economy risks being thrown off course. In this insight, we outline how Russia and Ukraine face economic collapse in the short term. And we consider how bad the situation could get for the global economy in a downside scenario.

Table of contents

  • Executive summary
  • Economics of war
  • Ukrainian economy set back two decades
    • Business climate in Russia deteriorating rapidly
    • Will Russia default on its debt?
  • Ripple effects for the global economy
  • How bad could it get for the global economy?
  • Does this change the global economic landscape indelibly?

Tables and charts

This report includes 10 images and tables including:

  • Ukraine economic collapse
  • Population flight
  • Russian official reserve assets
  • Oil price in roubles
  • Russia's top trading partners (2020)
  • Trade exposure to Russia (2020)
  • Russia net foreign direct investment (FDI) outflows
  • Banks' exposure to Russia
  • Global GDP growth
  • Global GDP index

What's included

This report contains:

  • Document

    Russia/Ukraine conflict: the economics of war

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