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    Joseph Tan
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    The trade war between Russia and Ukraine will negatively impact both economies in several ways: 1) Higher prices for commodities like food, energy, and grains due to disrupted exports from both countries will fuel inflation. 2) Neighboring economies will face issues like disrupted trade, supply chains, refugee crises, and lack of remittances. 3) Reduced business confidence and higher uncertainty will tighten financial conditions through lower asset prices and investment.

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    Macroeconomics

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    The trade war between Russia and Ukraine will negatively impact both economies in several ways: 1) Higher prices for commodities like food, energy, and grains due to disrupted exports from both countries will fuel inflation. 2) Neighboring economies will face issues like disrupted trade, supply chains, refugee crises, and lack of remittances. 3) Reduced business confidence and higher uncertainty will tighten financial conditions through lower asset prices and investment.

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    11 views1 page

    Macroeconomics Presentation Draft

    Uploaded by

    Joseph Tan
    The trade war between Russia and Ukraine will negatively impact both economies in several ways: 1) Higher prices for commodities like food, energy, and grains due to disrupted exports from both countries will fuel inflation. 2) Neighboring economies will face issues like disrupted trade, supply chains, refugee crises, and lack of remittances. 3) Reduced business confidence and higher uncertainty will tighten financial conditions through lower asset prices and investment.

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    Question:

    How will the trade war between Russia and Ukraine affect its economy?

    Positive: Negative:
    -Ukraine and Russia are among the -Higher prices for commodities like food
    world’s main suppliers of agri-food and energy will push up inflation further,
    commodities, particularly grains and oils. in turn eroding the value of incomes and
    Together, they provide over 30% of world weighing on demand.
    trade in wheat, 32% of barley, 17% of
    corn/maize and over 50% of sunflower -Russia and Ukraine are major
    oils, seeds and meals. Many emerging or commodities producers, and disruptions
    vulnerable economies rely on these have caused global prices to soar,
    supplies for their food security, especially especially for oil and natural gas.
    in the Middle East and Africa. -In the long run, however, economists say
    -The Russian economy could benefit from Russia, while avoid complete collapse, will
    higher prices for commodities, especially pay a heavy price for the war: deepening
    for its energy exports. However, EU economic stagnation through lost
    countries announced their intention to investment and lower incomes for its
    limit their imports from Russia. people.

    - High energy costs fueled by the war are -Neighboring economies in particular will
    benefiting Russia, a major oil and natural grapple with disrupted trade, supply
    gas exporter whose agile central bank and chains, and remittances as well as an
    years of experience living with sanctions historic surge in refugee flows.
    have stabilized the ruble and inflation -Reduced business confidence and higher
    despite economic isolation. investor uncertainty will weigh on asset
    prices, tightening financial conditions and

    Interesting:

    Under the present circumstances, the scenario of a Russian victory could only be presented as an improbable
    outcome, especially after the recent successful Ukrainian counter-offensives. Although Putin could have
    presented a limited annexation at an earlier stage as a victory of sorts, such a scenario could only now be
    foreseen if the West would completely halt its support for Ukraine.

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