The Ukraine war has had a significant impact on the world economy. Because many crops such as sunflower oil are exported from Ukraine. But due to the recent war, the regular supplies are in trouble. That’s why the World Bank has mentioned it as the “largest commodity shock” since the 1970s.
The World Bank has shared a new forecast where they explained how the war in Ukraine is set to cause disruption in the global economy. Experts also said that the conflict would contribute to huge price rises for goods worldwide. They warned that especially some basic goods like natural gas, wheat, and cotton will face significantly higher prices.
The senior economist at the World Bank Peter Nagle said, “The increase in prices is starting to have very large economic and humanitarian effects” He also said, “households across the world are feeling the cost-of-living crisis. We’re particularly worried about the poorest households since they spend a larger share of income on food and energy, so they’re particularly vulnerable to this price spike.”
Due to Russia’s invasion of Ukraine energy prices are soaring. The prices are set to increase by more than 50% which influences the bills for households and businesses. The price of natural gas is experiencing the biggest rise. It is thought that the price will fall in 2024. But still, it would be 15% higher than they were last year. Similarly, the prices are expected to remain higher this year. Because 11% of the world’s oil is produced by Russia which is the third biggest share in the world.