The Russia-Ukraine war is having widespread regional economic impacts, including higher inflation and slower growth in Europe due to sanctions on Russia, supply chain disruptions, and increased defense and energy spending. Central Asia is experiencing curbed trade, remittances, investment, and tourism, as well as tighter global financial conditions. The Middle East and North Africa are facing higher food and energy prices, increased government subsidies, and potential capital outflows.

1. RUSSIA-UKRAINE WAR
Regional Economic Impact

2. Sanctions, Ruble’s depreciation
EUROPE
Inflation
Supply chain disruptions
Increasing energy and defense spending

3. Adverse effect on economic growth
Inflation
Adverse effect on external and fiscal accounts
CENTRAL ASIA
Curbed trade, remittances, investment,
and tourism

4. Tighter global financial conditions
MIDDLE EAST AND
NORTH AFRICA
Higher food and energy prices
Raising government subsidies
Capital outflows may be spurred

5. Minimal policy space to counter effects
of the war
SUB-SAHARAN AFRICA
Socio-economic pressure
Public debt vulnerability
Record wheat prices
Difficulty in recovering from pandemic

6. High commodity prices
WESTERN HEMISPHERE
Quickened inflation
Higher oil prices hurt importers but help exporters
Rise in interest rates

7. Slowed global economy
ASIA-PACIFIC
Adverse impact on major exporters and
petroleum importers
High energy prices