According to the German Chancellor, the consequences of these problems will affect not only Russia and Ukraine, they are already being observed in the world.
The difficulties that arose in the global economy amid the coronavirus pandemic will be aggravated by the situation in Ukraine, German Chancellor Olaf Scholz said at a campaign event in Essen, DPA reports.
According to him, “all the difficulties that the world economy is facing today, and which were already quite large due to the coronavirus pandemic are now becoming even greater.” The consequences of these problems will be visible far beyond the borders of Russia and Ukraine, they can be seen around the world already now, five weeks after the start of the special operation, the chancellor believes.
Scholz called for a speedy end to hostilities. He called Western sanctions against Russia “effective measures” and expressed the opinion that the West acted quickly and unitedly in the current situation.
How the conflict in Ukraine affected the economies of post-Soviet countries
At the end of March, Moody`s experts published a report on how the restrictions imposed against Russia will affect the economies of the CIS countries (available to RBC). They warned of a rise in unemployment and a decline in remittances from Russia (an important source of income for the Central Asian countries). Also, experts reported problems in the transit of goods from the CIS through Russia, which had the greatest impact on the economy of Kazakhstan. In the context of rising inflation, these problems will slow down GDP growth throughout the post-Soviet space, Moody`s concluded. In turn, experts from Renaissance Capital have adjusted their forecasts for GDP growth in 2022 for Russia’s partner countries: in the case of Kazakhstan, this figure fell from 5.3 to 3–4%, and for Uzbekistan, from 6 to 4–5%. . The projected GDP growth in Armenia decreased from 5.5% to 1-2%. The anti-Russian sanctions, RBC wrote, will also affect the business of the Central Asian countries due to the linking of logistics operations to Russia.