A $1.30 trillion hit to the global economy

Mumbai: Due to the Russia-Ukraine war, the global economy has suffered a blow of 1.30 trillion dollars in 2022. According to a study by the German Economic Institute, Western countries were the most severely affected by the war as they lost 65 percent of their global output, the study was reported by a Chinese news agency.

The war has had serious consequences on the global economy. Energy and raw material supply constraints have put pressure on companies worldwide.

Europe's largest economy, Germany, saw inflation as high as 10 percent at one point in 2022 due to high energy prices. Inflation stabilized at 8.70 per cent in January. High energy costs had hit production levels. This was a burden that many companies found unbearable.

The report also said that high inflation had reduced the spending power of households and had to cut back on consumption. Companies were reluctant to invest due to global uncertainty and high prices. Even in 2023, there are no signs that everything will be fine.

It is worth mentioning here that as the war is about to complete a year, crude oil prices are still trending high. Western sanctions on Russia have slowed the supply of some commodities, including crude oil.

Even after a year, both the countries do not seem to be ready to bow down to each other, but recently the sudden visit of the American President Joe Biden to Ukraine is showing signs of worsening the situation.