Impact of Ukraine War on UK Economy: Macroeconomic and Financial Advice

Contemporary
Business Environment

Table of Contents
INTRODUCTION.........................................................................................................................3
Explain the main impacts of the ongoing war in Ukraine on the UK’s economy.......................3
What macroeconomic advice can be given to the UK government regarding any adverse
effects the war in Ukraine may have had on the UK's economy?...............................................4
What financial advice can be given to the UK Central Bank to address any damaging
consequences the conflict in Ukraine may have had on the UK economy?................................6
CONCLUSION..............................................................................................................................7
REFERENCES..............................................................................................................................8

INTRODUCTION
The economic effects of the war will depend on the duration and intensity of the fight, as
well as the level of limitations and financial turmoil. Here is a breakdown of how trade
interruption might affect the UK. This size of conflict includes enormous sociopolitical risk,
which could be the obstruct economic progress by itself (Chowdhury and et. al., 2022). It has
been determined that persistent decreases in manufacturing output, employment, and
international trade are caused by high geopolitical risk. As a result, the focus of this essay will be
on the crucial aspects of how the war would affect the UK's economic condition, along with its
impact, consequences, and potential remedies.
MAIN BODY
Explain the main impacts of the ongoing war in Ukraine on the UK’s economy.
Russian and British businesses hardly ever interact directly. The degree of monetary
coordination of Russia with the world monetary framework isn't extremely high, and exchange
between the two is generally little in contrast with the size of every economy. Russia's extension
of Ukraine and the reactions the UK and its partners took in reprisal to it, be that as it may, may
keep on impacting the UK economy. Just 0.7% of the UK's administration and item commodities
to Russia represent generally 1.5% of the overall imports. The majority of British exports to
Russia are appliances, manufacturing, and automobiles and their parts (Ferreira and et. al., 2022).
In 2019, the most recent year for which information is both accessible and unaffected by the
breakdown, the bulk of Russia's imports to the UK was made up of billions, of oil and petroleum
products, and other such items. The likelihood that the dispute may harm trade is increased by
four factors:
 Businesses will face logistical challenges when sending goods to and from Russia.
Except in the case of essentials like food, medicine, and international urgent supplies,
shipping giants, for instance, Maersk and MSC have already made an announcement
prohibiting all corporate deliveries into and out of the nation. This prohibition extends to
all points of entry and exit, along with the harbours on the Baltic and Black Seas and in
Far Eastern Russia.
 Imports of "twin" products and expertise to Russia (i.e., those with both armed and non-
military resolutions) are forbidden, and the sanctions may be strengthened. Punitive