How is the war in Ukraine changing the world? See the effects in 12 charts.

Ukraine’s sweeping economic impact ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

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Ripple effects In the news • The great shake-up. The war in Ukraine has set off a chain of reactions that is reshaping the whole world. Some countries, particularly in Africa and the Middle East, are experiencing huge price spikes in wheat, cooking oil, and other agricultural products. The exodus of 5.8 million Ukrainian refugees, shortages of natural gas and oil, and political and military realignments mean that life is changing in profound ways across the globe. [NPR] • Economic repercussions. The Ukraine invasion’s domino effect on the world economy is gradually becoming clear. The IMF and World Bank have both cut global growth forecasts, citing the war’s impact on the price of commodities traditionally supplied by the region. Central banks are attempting to tame inflation with aggressive interest rate hikes, which is rattling financial markets. The situation is also intensifying supply and demand imbalances and harming consumer sentiment. [CNBC] The war is aggravating financial-system risks such as inflation-led recession, a deflating bubble in China’s property sector, and gridlock in the payments system. On McKinsey.com • Facts and figures. In 12 charts, McKinsey examined the consequences of the war in Ukraine for society and the global economy. A few headline numbers: a key index of food prices could rise by as much as 45% this year, McKinsey analysis suggests. In 2021, Europe imported 36% of its gas from Russia; the continent could reduce this to 10% this year. About 80% of Western tech firms have exited Russia or are scaling back, while more than 60% from other parts of the world are staying put. • Twelve disruptions. The war’s effect on supply chains and on the future of globalization is multifaceted, dynamic, and will depend on its duration and intensity. McKinsey has put data behind our view on how several scenarios are likely to play out. “Just in time” supply chain management is giving way to “just in case” approaches. Global tech standards are now more likely to separate than to unify. Defense spending is on the rise. Explore 12 disruptions that are changing our world. — Edited by Katy McLaughlin    See the big picture Was this forwarded to you? Sign up here. Or send us feedback — we’d love to hear from you. Follow our thinking This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007