Russia's invasion of Ukraine has caused "the greatest supply shock" in 50 years, the European development bank said Thursday while predicting how the war will hammer both economies
A resident walks past a burned out building after Ukrainian forces expelled Moscow's troops from the the town of Trostyanets which they had occupied at the beginning of their war with Ukraine, March 30, 2022. (Credit: Thomas Peter / Reuters)
London, United Kingdom: Russia's economy will contract by 10 percent this year and Ukraine's gross domestic product by as much as 20 percent as the war between the two countries causes "the greatest supply shock" for 50 years, the European development bank, EBRD, forecast Thursday.
Before Russia invaded its pro-Western neighbour on February 24, the London-based European Bank for Reconstruction and Development had predicted that Ukrainian GDP would grow by 3.5 percent this year and that the Russian economy would expand by three percent.
The EBRD said it was the first international financial institution to update growth forecasts since the outbreak of the war in Ukraine last month.