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Economics 2022 Blogpost 1

The war in Ukraine has triggered a costly humanitarian crisis that demands a peaceful resolution. At the same time, economic damage from the conflict will contribute to a significant slowdown in global growth in 2022 and add to inflation. Fuel and food prices have increased rapidly, hitting vulnerable populations in low-income countries hardest.

Global growth is projected to slow from an estimated 6.1 percent in 2021 to 3.6 percent in 2022 and 2023. This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than projected in January.

4 comments

4 Comments

conosim

Sep 07, 2022

Conor Simmons

I just recently watched a PBS Newshour for September 5, 2022, in which Sweden, along with Finland, is now wanting membership in the NATO alliance. Also, the Swedish tourist hot spot of Gotland Island is militarizing in response to the ongoing Russian aggression. This war has been huge in determining the defense spending and defensive economic posturing of not only Europe, but of the world. Understanding what we know about GDP, government expenditure accounts for a large portion of it (Cowen & Tabarrok, 2018). This is an incredible obstacle for the poorest countries in the world who rely on Ukrainian grain exports and other goods to survive, but is it also another catalyst for increased government spending in the military, private production and public acquisition and bequeathing, markets?

Cowen, Tyler, and Alex Tabarrok. Modern Principles Of Economics. 4th ed. New York: Worth Publishers, 2018.

trinoco

Sep 12, 2022

Replying to

Global geopolitical risks have soared since Russia's invasion of Ukraine. Investors, market participants, and policymakers expect that the war will exert a drag on the global economy while pushing up inflation, with a sharp increase in uncertainty and risks of severe adverse outcomes.2 As an example of these concerns, the April 2022 edition of the International Monetary Fund's World Economic Outlook contains more than 200 mentions of the word "war." Some economic effects are already materializing. The economies of Russia and Ukraine are contracting sharply as a direct result of the war and the sanctions imposed on Russia. Commodity markets are in turmoil and financial markets have been highly volatile since the start of the conflict. In light of these developments, a key question is: How much will geopolitical tensions weigh on economic activity in 2022 and beyond?

The Effect of the War in Ukraine on Global Activity and Inflation

gladsug

Sep 06, 2022

Gladys Suggs

Blog Response 2

The war in Ukraine is traumatic, great devastation, and an emotional catastrophe for the people of their country. Russia’s invasion of Ukraine on 24 February 2022 has caused global turmoil and catalyzed a plethora of economic and sociopolitical events that have not been experienced for decades. Delardas, O., Kechagias, K. S., Katsikas Triantafyllidis, K., & Giannos, P. (2022). The resources exported and imported reflect the inflation of many items utilized in the United States.

Reference

Delardas, O., Kechagias, K. S., Katsikas Triantafyllidis, K., & Giannos, P. (2022).

Concerns about academic freedom caused by the Russia–Ukraine war. EMBO

Reports, 23(5), e55079-n/a. https://doi.org/10.15252/embr.202255079

trinoco

Sep 12, 2022

Replying to

I completely agree about the devastation, The increased geopolitical risks induced by the Russian invasion of Ukraine will weigh adversely on global economic conditions throughout 2022. Such effects are estimated in our model to reduce GDP and boost inflation significantly, exacerbating the policy trade-offs facing central banks around the world.

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