Experts have calculated "gigantic" economic losses from the war not only for Ukraine but also for third countries

Russia's war against Ukraine is causing enormous economic losses not only in Ukraine but also in third countries. In Ukraine alone, GDP losses will amount to about $120 billion by 2026, according to a study by the Kiel Institute for Economic Research (IfW) released on Wednesday, 14 February.

Source. This was reported by Deutsche Welle.

Ukraine will also lose almost one trillion dollars worth of production assets, such as equipment, machinery and factories. At the same time, the losses of third countries will reach $250 billion. Of this amount, $70bn will be borne by the EU, and between $15bn and $20bn by Germany alone.

"Russia's attack on Ukraine is causing huge economic losses not only to Ukraine itself, but also to neighbouring countries and Germany. In general, the calculations once again demonstrate how high the value of peace is, including in terms of the economy, and how catastrophic the consequences of war on one's own territory are in every sense," said Moritz Schularik, head of the IfW, adding that military power that excludes the possibility of an attack is also a sensible means from an economic point of view.

According to IfW estimates, a war over Taiwan would result in a loss of $2.2 trillion in global GDP over five years, and $1.7 trillion in the event of a war with Iran.

Background. As a reminder, China complained to the US about the "successful military cooperation" between Russia and North Korea.