The war in Ukraine, in all its dimensions, is producing alarming cascading effects to a world economy already battered by COVID-19 and climate change, with particularly dramatic impacts on developing countries. Recent projections by UNCTAD estimate that the world economy will be a full percentage point of GDP growth lower than expected due to the war, which is severely disrupting already tight food, energy, and financial markets.
Ukraine and the Russian Federation are among the world’s breadbaskets.
They provide around 30 per cent of the world’s wheat and barley, onefifth of its maize, and over half of its sunflower oil. At the same time, the Russian Federation is the world’s top natural gas exporter, and second-largest oil exporter. Together, neighbouring Belarus and the Russian Federation also export around a fifth of the world’s fertilizers.
As a result, commodity prices are reaching record highs…