Russia-Ukraine Conflict & its Economic Impacts
Channel: STUDIO de CONTINUUM
Date: 2022-11-23

The Russia-Ukraine conflict has prevailed longer than most had predicted. 
Sending the global economy into a tailspin, the war has caught many economic analysts off guard.
With the crisis approaching its 300th day, its effects on global trade are becoming more evident.
Russia invaded Ukraine at a very crucial time when the world was just recovering from the disruption of supply-chains due to coronavirus pandemic.
 This increased the pressure on already tensed supply and demand, damaging consumer sentiment and is threatening global economic growth.
Inflation in the agriculture and power sectors is skyrocketing, sending the price of essential consumer goods well above the purchasing ability of middle-class households. 
 The Ukraine–Russia region not only exports primary staples like grains but also accounts for the majority of world fertilizer production. 
This region almost provides 30% of global wheat and 65% of sunflower exports. 
The IMF recently warned that “increases in food and fuel prices may also significantly increase the prospect of social unrest in poorer countries.”
‘Russia is a major supplier of oil, gas, and metals, and, together with Ukraine, of wheat and corn. Reduced supplies of these commodities have driven their prices up sharply,” the IMF said Tuesday
The increase in energy prices has been the largest since the 1973 oil crisis, while the price increases for food commodities have been the largest since 2008.
Despite the consequences, there are no signs of Russians backing down.
Many analysts state that these sanctions are unlikely to stop Russian President Vladimir Putin from his objectives in Ukraine. 
Many Others, however, want more strict measures.
Whatever happens on the front line in the next few days and weeks decides the fate of the global economy.

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