The Impact of the Russian-Ukrainian Conflict on Romania's Economy

Abstract

Lives lost, pain, families torn apart, people fleeing war, cities destroyed - all are part of the war triggered by Russia's invasion of Ukraine, an unprecedented humanitarian crisis. The ongoing conflict on Romania's border has profound economic consequences not only for the belligerent countries, but for the whole of Europe and the world's economies have not been spared from imported inflation and disruptions in world trade. In our research, we aimed to highlight the impact of this conflict on our country, causing an increase in inflation, fiscal pressure, budget deficits, public debt and it accentuated climate problems. In the current conjuncture, various adverse shocks can propagate through several channels, therefore in our research we will briefly present the most important of them. Russia's invasion of Ukraine and associated sanctions represent a broad global shock with divergent effects on economic activity (decline) and the inflation rate (increase).

Keywords

• national security
• international economics
• inflation
• financial crises
• war