The Economic Effects Of The Ukraine War

After being affected by the Covid-19 pandemic, the Ukraine-Russia war is sending the world’s economies on an unpredictable course.?Countries that depend on Ukraine and Russia’s vast oil, nickel, wheat, and energy resources will suffer the most here.

However, that doesn’t mean that other countries are safe from the aftermath of the Ukraine-Russia war. So, on that note, let us take a look at the various economic effects of the Ukraine war?and what we can expect in the future.

Food Prices Are Skyrocketing

One of the most common economic effects of the Ukraine war?is that it will send food prices through the roof. For instance, Ukraine and Russian combined are one of the largest exporters of wheat, accounting for around half of the worldwide exports.

However, this rise in prices will put a lot of burden on countries such as Turkey and Egypt?as they import around 70 percent of their wheat from Ukraine and Russia. In addition, this will put a lot of economic strain on Turkey, with the country already going through an economic crisis of its own.

Oil Prices Are Increasing Rapidly

You probably already knew this, but one of the most common economic effects of the Ukraine war?is the resulting oil price hikes.

For example, gasoline prices reached a whopping 4.3 dollars per gallon in early March, while Brent crude hit 130 dollars per gallon. This was a 15 percent increase compared to what prices were in February.

And countries that don’t make their oil gasoline and crude oil will see the worse economic effects of the Ukraine war, especially south Asian countries.

Wrapping Up

The economic effects of the Ukraine war?are driving various countries to reassess their economic structure and worry about self-sufficiency. Sure, the war will be over one day. But, when is the question people ask. Therefore, countries dependent on Ukraine or Russia for resources should push forward and search for ways to improve their GDP, reducing this dependency!