HM Wilkins Imperial – War in Ukraine to Impede Global Economy

Report by HM Wilkins Imperial shows how the war in Ukraine will hurt global economic growth.

Tokyo, Japan, March 22, 2022 --(PR.com)-- A recent report released by Tokyo based investment house, HM Wilkins Imperial, shows that the war in Ukraine will likely have a negative impact on the global economy.

Against a backdrop of already high inflation driven by the pandemic-led disruption, analysts at HM Wilkins Imperial say the war in Ukraine will cause inflation to rise even further.

The recent report by HM Wilkins Imperial analysts pointed to the skyrocketing prices of energy and foods as the main driver of elevated inflation in the coming months. Russia is one of the world’s largest producers of oil and gas. Sweeping sanctions imposed by the United States and European countries against Russia for its unprovoked attack on Ukraine, will reduce the supply of energy and push up the price.

“Many countries have not provided for alternative energy producing sources, or the switch to these has been somewhat lagging,” said Rui Kimura, Chief Finance Officer at HM Wilkins Imperial. “These countries will struggle to meet the supply demands for energy in the absence of Russia’s oil and gas.”

The ripple effect of higher fuel and energy costs will be felt by everyone as food prices are set to soar. The report by HM Wilkins Imperial noted that the poorest households will be the hardest hit by the price shocks.

Russia and Ukraine are big producers of food, with Ukraine being the world's largest producer of sunflower oil and Russia and Ukraine producing almost a third of the world's wheat.

“As the world imposes sanctions on Russia, the supply of certain foods and commodities will become limited. Countries have not had time to prepare for the adjustment and the consequence will be much higher prices for these basic necessities,” said Mr. Kimura

While the continually evolving nature of the situation in Ukraine makes it difficult to predict how severe the impact on the global economy will be, the report by HM Wilkins Imperial states that the war in Ukraine and its economic fallout will almost certainly result in a slower rate of global economic growth this year.
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