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Moldova, Georgia, Armenia: Caught in the maelstrom of Russia'a downturn?

The Ukraine war and the sanctions imposed on Russia have a wide range of economic impacts. Particularly affected are countries that have close economic ties with Ukraine and Russia. Russia itself is experiencing a significant drop in GDP.

In order to determine and quantify the effects more precisely, the German Economic Team has prepared an overview study that inter alia examines the macroeconomic and trade effects using comparative parameters. The countries examined include Moldova, Georgia and Armenia.

We come to the conclusion that, although all three countries will be affected, the severity of the economic shock differs between the countries studied. This is due, among other things, to a varying dependence on trade with Russia as well as on energy imports and remittances.

The study attracted a great deal of attention and was presented to the Eastern Europe Department of KfW and Germany Trade and Invest (GTAI), among others.

The full Policy Briefing can be found here.