WAR - a devastating effect on the economy
History has demonstrated that war always unbalances a country economy, which often take years to stabilize after war.
take for instance the russia-ukraine war, it's reported that loss of human capital was significant
destruction of agricultural trading infrastructure caused huge damage to production capacity, even reduction in private consumption of more than a third relative through war.
*even Russia itself is not free from this economic press down, according to most estimates, everyday of the war in Ukraine costs Russia $500 million to $1 billion.
in recent time' Russia has faced a record shortage of factory workers in July 2023.
with more than 43% of industrial enterprises facing a shortage up from 35% in April.*
# this economic disruption by war is not only felt in Europe but also in africa.
recently in Sudan labour income has declined by more than 50% while capital income has declined by well over 40% which is relative to 2021.
the worst part is that the production in employee income would be the highest for primarily educated workers
but the types of capital that would suffer the most are those used in the mining sector, declining by over 90% and this could reduce economic output by half and push well over 1.8 million into poverty.
the GDP loss of Sudan is caused by the Sudanese Armed forces(SAF) and the paramilitary rapid support forces(RSF) war.
this war has been destroying infrastructure and compromising access to basis services
one of the most important sectors accounting for 40% of GDP and 80% of jobs.
Agriculture has also been badly affected by this war, with trade and financing severely impacted.
the currency of Sudan i also badly affected by the ripple effect of the war
the Sudanese pound has recently plummeted, loosing 50% of its value since the start of the war.
the international monetary fund(IMF) also warns that neighbouring countries and north Africa might also suffer from a weakened Sudanese economy.
the Palestine's are also in an economic disruption because of the ongoing war between them and Israel
according to a united nations report,occupied west bank, and the socioeconomic, shock of the israel-gaza war will force hundreds of thousands of Palestine into poverty.
in just one month of war poverty has increased by 20% and gross domestic products declined by 4.2 percent, this report was released by the UN economic and social commission for western Asia(ESCWA).
the agencies added that the level of economic impact outstrips that of the conflicts Syria and Ukraine, or any previous Israeli Palestine war.
In a deeper look on Israel economy the war on Gaza has wrecked havoc on its own economy, costing an estimated $260million a day.
*the attack of Israel on the Palestine has taken a dramatic economic toll on Israel as businesses are upended, commerce has slowed, and flights to the country has been cancelled,
with tourism also coming to a halt.
also there has been Mass departure from Israel, of the 16.2% of the labour force made up of immigrants and foreign workers which makes Israel's economy currently operating below its potential real GDP.*
thanks for reading.