Think-tank says energy embargo would push most of region into recession
By Marton Dunai in Budapest
Russia’s invasion will cost Ukraine’s economy as much as half its economic output this year, according to projections from the Vienna Institute for International Economic Studies.
The think-tank’s spring outlook, published on Wednesday, shows Russia is also likely to suffer a deep recession as a result of western sanctions, while the rest of the central and eastern European economy is at risk from an oil and gas embargo.
Ukraine stood to lose 38 per cent of its gross domestic product this year even if a ceasefire was agreed in the coming months, the report said. “Even with a political solution, a strong recovery is unlikely to get under way until 2024, since private investors will probably be slow to return to the country,” said Vasily Astrov, a senior economist at the institute.
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