WASHINGTON: Ukraine's GDP will fall by 45.1 percent this year as a result of Moscow's continuous war on Kiev, while Russia's economy would contract by 11.2 percent, the World Bank has projected.

The war and subsequent sanctions on Russia are wreaking havoc on economies around the world, with emerging markets and developing countries in Europe and Central Asia expected to bear the brunt, according to the newly released World Bank Economic Update for the region.

The economy of emerging markets and developing countries in the region is now expected to contract by 4.1 percent this year, compared to a pre-conflict forecast of 3% growth, as economic shocks from the conflict compound the ongoing effects of the Covid-19 pandemic, according to the update, which notes that the contraction is twice as large as the pandemic-induced contraction in 2020.

According to the report, Ukraine's GDP will drop by 45.1 percent this year, "but the degree of the contraction will depend on the duration and intensity" of the conflict.

Russia's economy has already entered a "severe recession" as a result of unprecedented sanctions, with output expected to decline by 11.2 percent in 2022, according to the update.

Apart from Russia and Ukraine, Belarus, Kyrgyzstan, Moldova, and Tajikistan are predicted to enter recession this year, with growth forecasts lowered in all economies due to conflict spillovers, weaker-than-expected eurozone growth, and commodity, trade, and financing shocks.

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