Shafaq News/ The conflict in Ukraine could knock $1 trillion off the value of the world economy and add 3% to global inflation this year by triggering another supply chain crisis, according to the Iraqi National Institute for Economic and Political Research.
The head of the Institute, Wissam al-Helou, told Shafaq News Agency that higher oil and gas prices might be able to mitigate the impact of the sanctions on Russia but the level of global gross domestic product (GDP) will drop by about 1 percentage point by 2022 and 2.5 in 2023.
Europe, which is bound to Russia with commodity and energy supply chains, leave it more exposed than any other region, according to al-Helou.
"The war will also force European governments to pay more in order to accommodate the influx of migrants and strengthen their armies," he added.
Al-Helou urged the Iraqi government and relevant economic bodies to heed the global indices and immunize the economy with sustainable and stable resources, "given that Iraq is vulnerable to all the variables that are going of charts currently due to the ongoing war."
"Iraq's interest shall prevail, both economically and politically," he continued, "the economy is already stretched by decades long history of soaring unemployment and poverty rates, in addition to a torrent of political and administrative problems. It cannot, under the current circumstances, to endure the anticipated damages of the ongoing war."
