Multiply Group | Abu Dhabi, UAE
Russia Ukraine War - Impact on Economy, Markets and Investing
Insights
18 Mar 2021

The global economy has significantly slowed and looks increasingly likely to head into a recession as the ongoing war in Ukraine is forcing central banks to lift their interest rates rapidly to tame the rising inflation that is having a considerable impact on growth and the stock markets.

 

The Russo-Ukraine conflict is rapidly changing the global geopolitical and economic landscape although the two countries account for less than 2% of the world’s GDP. The 6-months war has shattered expectations of a quick recovery from the pandemic and it has tenuous situation much worse for energy markets, food and other commodities while disrupting the global supply chain. Hence, an end to the conflict could improve the risk perception and put downward pressure on inflation.

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