The economic consequences of the conflict have the potential to threaten global growth.

The outbreak of a war on the European Union’s borders means another uncertainty for a global economy already hurt by the pandemic, supply chain standstill and inflation.

Kremlin ordered the Russian army to enter the breakaway territories of Ukraine late Monday, but tensions have taken a toll, sending stock prices down and energy prices up. Fighting reality could send food and energy costs up, exacerbate inflation fears and spook investors, a combination that could threaten global growth.

Europe gets almost 40% of its natural gas and 25% of its oil from Russia and is likely to face Huge increase in heating and gas bills has risen. Russia is also largest supplier of wheat in the worldand together with Ukraine, account for almost a quarter of total global exports.

Ukraine sends more than 40% of its wheat and corn exports to the Middle East or Africa, where there are concerns that food shortages and continued price increases could cause social unrest.

The economic consequences of conflict are perhaps most clearly felt by the world’s most vulnerable people.

“Poor people spend a higher share of their income on food and heating,” says Ian Goldina professor of globalization and development at the University of Oxford. The economic consequences of the conflict have the potential to threaten global growth.

Fry Electronics Team

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