The War in Ukraine Hurts an Already Struggling World Economy: Two-Year World Outlook May 2022
The Conference Board of Canada, 22 pages,
May 6, 2022
This quarterly examination of the short-term economic outlook for the world's major economies also contains an in-depth analysis of a number of issues that are relevant for understanding world economic trends and developments.
- The world economy will expand by 3.5 per cent this year – down from the 4 per cent gain anticipated before the beginning of the war in Ukraine.
- Oil, natural gas, and other commodities are the main links between the war and the world economy.
- Most countries were struggling with inflation prior to the war, and the sanctions placed on Russia will add even more to the upward trend in consumer prices.
- The United States economy has little exposure to the Russian and Ukrainian economies. However, a lengthy conflict could hurt consumer and business confidence.
- China’s leaders appear to be pulling back on some of the initiatives designed to exert greater government control over the private sector.
- Although hurt by the sanctions implemented by the Western world, Russia’s economy is likely earning enough revenue from energy exports to keep its war machine going.
Table of Contents
Appendix A: Methodology