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World Bank predicts Ukraine's economy will shrink 35% in 2022

Russia Ukraine War
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With its ongoing war with Russia, the World Bank predicts that Ukraine's economy will shrink by 35% this year.

That's according to the anti-poverty agency's updated economic forecast report for the region that was released on Tuesday.

The World Bank projected that it'd cost the country, where the invasion has damaged farmland and displaced more than 14 million people, at least $349 billion to rebuild, which is more than 1.5 times the size of Ukraine's prewar economy.

"Russia’s invasion of Ukraine has triggered one of the biggest human displacement crises and exacted a heavy toll on human and economic life,” said Anna Bjerde, World Bank Vice President for the Europe and Central Asia region, said in a press release. “Ukraine continues to need enormous financial support as the war needlessly rages on as well as for recovery and reconstruction projects that could be quickly initiated."

Still, Tuesday's assessment is better than the 45% shrinkage they predicted in June, ABC News reported.

The bank also expects the economies of Europe and Central Asia to shrink 0.2% this year and grow just 0.3% next year.

In Russia, the bank forecasts its economy to shrink by 4.5% this year, with poverty projected to return to near 2020 levels.

The bank also predicts the country's economy will shrink again in 2023, this time by 3.6% before growing by 1.6% in 2024.

The bank said the growth would likely be due to increased consumption and exports.