Global: Russia invades Ukraine, damaging the global economy

Of the major world economies, Russia will bear the heaviest impact due to the impact of its self-imposed international isolation, said Oxford Economics, due to the events over the past 24 hours. The firm moved its global baseline for economic performance in line with its scenario for a full-scale invasion.

Oxford Economics will incorporate higher European gas, oil and food prices over the medium term in its baseline, as well as more financial market disruption and tougher E.U. and U.S. sanctions on Russia. The impact of these changes on Oxford Economics’ forecast for the global economy is significant, cutting 0.2 percentage points from GDP growth in 2022 and 0.1 percentage points in 2023.