Germany says Ukraine war costs global economy over $1.6 trillion in 2022

Russia's war against Ukraine cost the global economy more than $1.6 trillion (1.5 trillion euros) in 2022 alone. 

Rheinische Post cited the Institute for German Economics (IW) report for these figures on February 21.

Economists estimate that global output has fallen by this amount. This year the global economy's losses may increase by another $1 trillion (940 billion euros).

The war has disrupted supply chains around the world and led to soaring energy prices, the report says. In addition, rising inflation has reduced the purchasing power of consumers, it further points out.

IW experts based their calculations on the International Monetary Fund's autumn forecasts. At the same time, absolute losses in 2023 may be lower than in the previous year, economists admit, expecting that tension in global commodity and energy markets will decrease.