How will Russia’s invasion of Ukraine hit the global economy?

[roksana.hee]

The ongoing military conflict between Russia and Ukraine has raised concerns about its potential impact on the global economy. The direct effects of the conflict are likely to be felt primarily in the two countries involved, with Russia facing economic sanctions and potential isolation from the international community.

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Energy prices, the cost of commodities such as palladium and wheat and the potential impact on relations with China could play out in unexpected ways © FT montage/Bloomberg

The invasion of Ukraine by Russia could have several economic implications for the global community. Firstly, it could lead to a disruption of natural gas supplies to Europe, as Ukraine serves as a transit country for Russian gas. This could result in higher energy prices, which would impact businesses and households in the affected countries.

Secondly, the conflict could undermine investor confidence and lead to increased market volatility, particularly in the emerging markets. This would lead to a decrease in foreign investment and capital flows, which could potentially cause a recession.

Thirdly, the imposition of economic sanctions on Russia could lead to a decrease in trade between Russia and other countries. This would have a negative impact on the global economy, particularly in countries that are heavily reliant on trade with Russia.

In conclusion, the impact of Russia's invasion of Ukraine on the global economy is likely to be negative. The severity of this impact will depend on the duration and intensity of the conflict, as well as the response of the international community to the crisis.

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[BADecker]

The KGB of the old Soviet Union were smart. They are the ones who took over Russia in 1991. Putin is ex-KGB.

The war is an economic one. Because the US is strong economically around the world, the war is a battle of Russia to throw off the US economic chain.

World economy is changing. It happens, and has happened throughout history. BRICS may not win world economy, but it is becoming stronger as the USD is becoming weaker.

If the US loses world economic control, there will be loads of changes that will be made all over the world... as the US pulls its military out of all kinds of countries.

[Ucy]

Russia not getting involved would have had greater impact on the world.. Imagine a world where there is total choas, so much insecurity, oppression, famine etc. That is alittle bit of what things would have been like if Russia had not gone in to help its neighbor

[BADecker]

Russia was always involved. They had no choice with the US wanting to break them up into "states."

If the West doesn't win the war, the whole global economy will change. BRICS will add many more nations, and theirs will become the next global currency. They are designing it right now - https://infobrics.org/post/37495.

[DeathAngel]

The biggest impact on the Western World, certainly in Europe where I currently reside is oil prices. Our heating bills have soared & diesel (fuel for our cars) has dramatically risen.

Obviously the billions upon billions of $ that we are sending them adds to the economic problems in our respective countries, inflation soars as a result. It’s a big mess to be honest & the sooner it ends, the better for all of us.

[Car22]

 Russia  invasion of Ukraine hit the global economy badly after the second  world war. The direct impacts are the increased geopolitical risks has adverse effects on global economic condition. It has also triggered  like a fast moving refuge crisis unprecedented and major economy shakeup of global relationship including national Atlantic and treaty organization members. According to world bank reports that Russian economy will contract by 45 percent in 2022 by 11.2 percent due to Russian invasion of Ukraine. Developed countries are acting together to help people facing this war. The impact of the armed conflict on grain exports has worsened a global hunger crisis with catastrophic impacts throughout the world.

[BADecker]

Actually, it has already hit. Look at the prices. I wish this war never started, but now the main goal is to help and support Ukraine. It is great that people all over the world still do this.

Help and support Ukraine, but without giving them money and armament from the government. One of the major reasons for inflation is the money that is being given to Ukraine.

Anybody who wants to sell their land and property and give the proceeds to Ukraine is certainly welcome. Don't do it through government because such affects all of us adversely.

[Cobalt Emerald]

Nope, it has the potential to disrupt the global economy and make things pretty hairy for all of us.

For starters, natural gas supplies to Europe could be disrupted as Ukraine serves as a transit country for Russian gas. This could lead to higher energy prices and nobody likes paying more for gas, especially when it starts to affect wallets.

Next up, the conflict could undermine investor confidence and lead to increased market volatility. This could result in decreased foreign investment and capital flows, which could potentially cause a recession. Not exactly the kind of news you want to hear when you're trying to plan for the future.