The Ukraine-Russia conflict will have negative effects on all fronts: rising oil and gas prices will lead to a general rise in prices, investment will stagnate or move to more stable areas, there will be reductions in imports and exports, the national currency will depreciate, and the financing of twin deficits will be a growing problem. In addition, Romania could face a large number of refugees from Ukraine.
Ukraine’s severe tensions will have negative effects on all economic aspects: some trade flows will be disrupted or greatly reduced due to uncertainty over gas supplies in Russia, gas prices will rise, oil has already jumped by 100 of dollars per barrel, so the significant increase in the price of oil and gas will make its mark on all prices in general, says Prof. Univ. dr. Dumitru Miron from the Faculty of International Relations of the Academy of Economic Studies in Bucharest.
“There will be chain effects: exchange rate, inflation rate, reductions in exports-imports and especially the sentiment that makes its mark on economic policy and firm policy decisions. Investments will stagnate, some will be postponed. This state of uncertainty affects not only the stock markets, but also the daily decisions of companies. The global, aggregate, and especially European, economic impact will be very high “, said professor Dumitru Miron.
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