What could happen to the world economy with Russia’s invasion of Ukraine?
The first will be a blow to the financial markets and the stagnation of the economy worldwide.
In the words of the economist, Marta Bengoa, professor at the Collin Powell International School “The tensions will translate into increased volatility in financial markets traded on stock exchanges around the world.”
Although the conflict occurs thousands of miles away, it could affect the pocketbook of New Yorkers.
“Most families in the United States have pension plans which can have negative impacts on savings funds,” said Bengoa.
But there could also be an impact on the cost of certain foods at a time when the country is experiencing 7.5% inflation after the pandemic.
Russia and Ukraine account for a quarter of the world’s export of wheat products.
While Russia is one of the main suppliers of oil and raw materials that keep the world’s factories running.
“Both countries are suppliers of gas and oil, so if they conflict, the low supply of oil will cause prices to skyrocket,” said the economist.
Since Russia carried out the first military action on Wednesday night, stock markets have plummeted and oil prices have risen by nearly $6.
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