The Impact of the War in Ukraine on Global Trade and Investment

The war in Ukraine is a human tragedy for the people of Ukraine, but its economic implications are global. This instant report focuses on the direct impact of the war on world trade and investment. It identifies five trade and investment channels through which countries will be affected by the war in Ukraine. These encompass disruptions to: (i) commodity markets (especially food and energy), (ii) logistic networks, (iii) supply chains, (iv) foreign direct investment, (v) specific sectors. The report finds that world trade will drop by 1 percent, lowering global GDP by 0.7 percent and GDP of low-income countries by 1 percent. Beyond these direct effects, the war's long-term implications for global trade and investment will largely depend on how governments respond to the changing geopolitical environment