World Bank expects Ukrainian, Russian economies to shrink hugely: Report

The World Bank expects the Ukrainian economy to shrink by 45.1 per cent this year as a result of the Russian military operation, while Russia will see its economy contract by 11.2 per cent in the same period.

The DC-based lender's economic update for emerging markets in Europe and Central Asia said the conflict would hamper the region's industrial output, shaving 4.1 per cent off its GDP.

"The region's economy is now forecast to shrink by 4.1 per cent this year, compared with the pre-war forecast of 3 per cent growth, as the economic shocks from the war compound the ongoing impacts of the COVID-19 pandemic," the update released on Sunday said.

In addition to Russia and Ukraine, Belarus, Kyrgyzstan, Moldova and Tajikistan are all projected to fall into recession this year due to spillovers from the conflict, weaker-than-expected growth in the euro area and trade shocks.