KATHMANDU, JULY 5

The war in Ukraine is causing worldwide disruptions to trade and investment, affecting auto makers in Europe, hoteliers in Georgia and the Maldives, as well as impacting consumers of food and fuel globally. Although the world's poor - who spend a large part of their incomes on life's necessities - are the most vulnerable, no country, region, or industry is left untouched by these disruptions.

A new World Bank report - The Impact of the War in Ukraine on Global Trade and Investment - shows that world trade will drop by one percent, lowering global GDP by just under one percent. Manufacturing exporters such as Vietnam, Thailand, and Mexico see a sharp decline, especially in energy intensive sectors.

Net exporters of crops, including Turkey, Brazil, and India, and of fossil fuels, such as Nigeria and countries in the Middle East, see a surge in their exports, attenuating the negative effects of the war. The economic shock waves are moving through five channels: commodity markets, logistics networks, supply chains, FDI, and sectors such as tourism.

A version of this article appears in the print on July 6, 2022, of The Himalayan Times.