Egyptian widow struggling To buy meat and eggs for five for her children. Angry German laundry owner watches his energy bill jump fivefold. Nigerian bakeries have it shut Their doors, unable to afford the exorbitant price of precise.
One year After Russia invaded Ukraine on February 24, 2022 and caused The spread of suffering, and global economy Still suffering the consequences – collapsing supplies of Grains, fertilizers and energy with more Inflation and economic uncertainty in a world that was already compete with too much of both of them.
As dismal as the impact of the war was, there is one Consolation: It could have been worse. companies and countries in the developed world It proved surprisingly resilient, and has so far avoided the worst-case scenario of Painful recession.
but in Emerging economies, it was a pain more Intense.
In Egypt where nearly a third of the population spirits in Poverty, Halima Rabih struggles for years to feed her fifth school age children. Now, a 47-year-old widow has snapped back on even more basic Groceries by price rising.
“It became unbearable,” Rabih said, as she headed to her job as a cleaner in one of the states.run hospital in Cairo twin city of Giza. “Meat and eggs have become a luxury.”
In the United States and other wealthy people countriespainful increase in Consumer prices fueled in part of the war effect on Oil prices fell steadily. It fueled hopes that the US Federal Reserve’s inflation fighters would soften on interest rate Increases that threatened tipping the world’s largest economy to recession and led to the decline of other currencies against the dollar.
China also Drop a draconian zero delayed COVID lockdown last year that stumbled growth in the second-Larger economy.
some good Wealth helped, too: A warmer-than-usual winter helped lower natural gas prices and limit the damage from the energy crisis after Russia cut off gas to Europe. However, oil and gas prices were high enough to mitigate the impact on Russian energy exporter economy
Adam Posen, the president, said the war was a “humanitarian catastrophe” of Peterson Institute for International Economy. But its effect on the world economy transient shock. ”
Still, in Methods big And smallWar causes pain. in Europe, for For example, natural gas prices are still three times What they were before Russia began to gather forces on Ukraine borders.
Sven Bar who runs Commercial laundry in Walduern, southwestern Germany, is facing This gas bill year of About 165,000 euros ($176,000) – up From €30,000 ($32,000) last year – l run 12 heavy duty machines It can wash 8 tons of Laundry daily.
“We’re overpriced one to oneto our customers,” Barr said.
So far, he has managed to retain his customers after viewing the energy bills that come with a price He increases.
“Fingers crossed, it works so far,” he said. “At the same time, customers are groaning, and they have to pass costs on to their clients. “
While they keep their steady customers, they offer less business. Restaurants with Fewer customers need Wash fewer tablecloths. Several hotels closed in February instead of paying for heating during their slow season, which means fewer hotel sheets to clean up.
Terribly high food prices cause particular suffering on the poor. The war brought wheat, barley, and cooking oil out of Ukraine and Russia global Suppliers for Africa, Middle East and parts of Asia has a lot struggle with Food insecurity. Russia also It was the biggest resource of Fertilizer.
While a deal brokered by the United Nations and Turkey allowed some food shipments from the Black Sea regionthat it up for renewal next Month.
In Egypt the world’s first importer of wheat, Rabih took a second function in private clinic in July but still struggling to survive up with rising the prices. You earn less than $170 a month.
Rabih said she cooks meat once a month and has turned to cheaper by-products ensure Ha children Get your protein. But even those are becoming hard to find.
the government He urged Egyptians to try chicken feet and wings as an alternative source of Protein – suggestion met with mockery on social media But that also led to a spike in demand.
“Even the feet became expensive,” Rabih said.
In Nigeria, the largest importer of Russian wheat, average food prices increased by 37% last year. Bread prices have doubled in Some places amidst a wheat shortage.
“People are huge decisions Alexander Verhees said, who runs Life Flour Mill Ltd in South Delta State. “What food do they do buy? are they spend He. She on food? the study? medicine?”
40% at least of bakeries in Nigerian capital of Abuja shut down after price of Flour jumped by about 200%.
“They are still in the business They do it at breaking point with Mansour Omar, Chairman of the Board of Directors said of Bakers Association. “a lot of people Stop eating bread. They have gone for alternatives because of the cost. “
In Spain , government Spend 300 million euros to help farmers acquire Fertilisers price of which has doubled since the war in Ukraine.
“Fertilizers are vital because the land needs food,” said Jose Sanchez, a farmer. in the village of Anchuilo, East of Madrid. “If the land has no food, the crops do not grow up. “
It all means slowing down global economy. The International Monetary Fund (IMF) fell growth expected this year And in 2022, equivalent to about $1 trillion in lost production. europe economy for For example, it “still encounters significant headwinds” despite A.J drop in energy prices and risk of Nathan Sheets said: global Chief economist at banking giant Citi.
International Monetary Fund says Consumer prices jumped 7.3%. in the richest countries last year – higher than its expectations in January 2022 of 3.9% – and 9.9% in the poor of them, up than the expected 5.9% prior to invasion.
In the United States, this inflation has forced companies to be smart.
Stacy Elmore, Co-Founder of Luxurious pergola in Noblesville, Indiana, he said cost of Providing health insurance for Eight workers increased by 39% over the past year Up to $10,000 per month. Amidst a labor shortage, she also He had to raise hourly wages for $24 to $30 an hour.
Inflation-disturbed consumers began refusing to pay the $22,500 for Pergola type 10 x 16 ft of Gazebo without walls – sold through dealers. Sales sank last year. So Elmore focused on doing it yourself modelsHe sells directly to sharp shoppers reduced price of $12,580.
“With inflation rising, we’ve been working to broaden the scale of gravity of Our products and their manufacture easier for The average person to acquire, Elmore said.
In the Indonesian capital, Jakarta, there are many street sellers know they can not pass Along with their high food prices already struggling Client. So some skimp on parts insteada practice known as “deflation”.
“One kilogram of rice He was for Eight parts… But we are now made Mokroni, 52, said: who runs food stall and like Many Indonesians just pass by one name. He said clients “wouldn’t come to me shopIf the prices are too high.
“we hope for Peace, said he, “Because, after all, no one will win Or you lose, because everyone else will be a victim.”