Ukraine war to cost global economy about $3 trillion

Russia's invasion of Ukraine will cost the global economy $2.8 trillion in lost output by the end of next year - and even more, if a severe winter leads to energy rationing in Europe.

"We are paying a very high price for the war," The Wall Street Journal (WSJ) quotes the director of the Country Studies Branch at the Economics Department of the Organisation for Economic Cooperation and Development (OECD), Alvaro Santos Pereira, as saying.

According to the OECD report, the global economy should grow by 3 per cent this year and by 2.2 per cent in 2023.

Experts estimated an increase of 4.5 per cent in 2022 and 3.2 per cent in 2023 before the beginning of hostilities in Ukraine.

The difference between these two estimates means that the hostilities and their consequences will cost the world an amount equivalent to the output produced by the entire French economy during these two years, the report said.