Russia’s economy projected to shrink by 10%; Ukraine’s by 20%

A customer hands over Russian rouble banknotes and coins to a vendor at a market in Omsk, Russia on October 29, 2021 [File: Alexey Malgavko/Reuters]

The economies of Russia and Ukraine will shrink by 10 percent and 20 percent respectively in 2022, according to the European Bank for Reconstruction and Development (EBRD).

In its first economic forecast since Russia’s invasion on February 24, the London-based lender warned on Thursday that the war had triggered “the greatest supply shock since at least the early 1970s” and would have a severe effect on economies far beyond the immediate area of the conflict.