Russian-Ukrainian war’s impact on global economy

Reports indicate that the ongoing Russian-Ukrainian not only has severely impacted the two countries but also global economy. A recent study highlighted that the war in Ukraine caused far-reaching consequences on global food security. It explained that the war has disrupted the transportation of Ukraine’s grains, causing dramatic prices spikes and worsened food insecurity worldwide, particularly in vulnerable regions such as the Middle East and North Africa.

According to economists, the main impacts of the war on the EU economy is that the supply shock triggered by the increase in oil and gas prices, and the need to assist millions of refugees. North American countries, particularly the United States, have also encountered this crisis. The increase of gas price at gas stations and rising energy costs have made consumers in the those countries dissatisfied as prices are increased and the economy growth is low.

To avoid the impact of war, EU countries have adoped new policies to reduce their reliance on Russian gas. The EU recently announced a revised ‘Green Deal Industrial Plan’ it hopes will rival it. Meanwhile, the US has its protectionist Inflation Reduction Act (IRA) offering large subsidies for domestic production of electrical vehicles and other ‘green’ sectors.