Study: Ukraine War Expected to Have Bigger Impact on European Economies

 Ukrainian servicemen prepare to fire a M109 self-propelled howitzer towards Russian troops, amid Russia's attack on Ukraine, in Donetsk region, Ukraine September 22, 2023. (Reuters)
Ukrainian servicemen prepare to fire a M109 self-propelled howitzer towards Russian troops, amid Russia's attack on Ukraine, in Donetsk region, Ukraine September 22, 2023. (Reuters)
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Study: Ukraine War Expected to Have Bigger Impact on European Economies

 Ukrainian servicemen prepare to fire a M109 self-propelled howitzer towards Russian troops, amid Russia's attack on Ukraine, in Donetsk region, Ukraine September 22, 2023. (Reuters)
Ukrainian servicemen prepare to fire a M109 self-propelled howitzer towards Russian troops, amid Russia's attack on Ukraine, in Donetsk region, Ukraine September 22, 2023. (Reuters)

The war in Ukraine has reduced European economic growth and "considerably" pushed up inflation across the continent, the Swiss National Bank said in a study published on Friday, with worse effects still to come.

Since Russia invaded Ukraine in February 2022, Europe has seen a surge in energy prices, financial market turmoil and a sharp contraction in the economies of both Russia and Ukraine, the report said.

Examining the war's economic impact on Germany, Britain, France, Italy and Switzerland, the study said output would have been between 0.1% and 0.7% higher in the fourth quarter of 2022 if Russia had not invaded Ukraine.

Consumer prices in each of the countries would have been between 0.2% and 0.4% lower, said the working paper, which aims to stimulate discussion and is not necessarily the viewpoint of the SNB.

"The negative consequences of the war are likely to be far greater in the medium-to-long term, especially with regard to the real economy," the study said.

"In one to two years, this effect is likely to be approximately twice as large," it added.

Germany was the worst affected, the study said. Its GDP would have been 0.7% higher and inflation would have been 0.4% lower in the fourth quarter of 2022 if Russia had neither attacked nor threatened Ukraine, the study said.

Britain was also hard hit, with economic output reduced by 0.7% and inflation increased by 0.2%.

France would have seen inflation 0.3% lower and GDP 0.1% higher without the conflict, while Italian inflation would have been 0.2% lower and GDP 0.3% higher.

Swiss GDP would have been 0.3% higher and inflation 0.4% lower without the war, the study added.

However, the authors said their estimates tended towards the low side because they "probably" underestimated food price inflation and looked at oil prices rather than gas prices.

The impact of refugees and increased military spending may be more than in recent conflicts, they added.



Saudi Arabia Maintains Top Global Ranking in Cybersecurity Index

The pavilion of the National Cybersecurity Authority at the World Defense Show 2024 (SPA)
The pavilion of the National Cybersecurity Authority at the World Defense Show 2024 (SPA)
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Saudi Arabia Maintains Top Global Ranking in Cybersecurity Index

The pavilion of the National Cybersecurity Authority at the World Defense Show 2024 (SPA)
The pavilion of the National Cybersecurity Authority at the World Defense Show 2024 (SPA)

Saudi Arabia has retained its position as the world’s leading nation in the Cybersecurity Index, according to the World Competitiveness Yearbook 2025 released by the World Competitiveness Center of the International Institute for Management Development (IMD) in Switzerland.

Commenting on the achievement, Dr. Musaed Al-Aiban, Minister of State, Member of the Council of Ministers, and Chairman of the National Cybersecurity Authority, said this accomplishment adds to the Kingdom’s series of successes across all fields.

He attributed the progress to the leadership’s proactive vision in establishing a comprehensive cybersecurity sector, encompassing both security and development dimensions, at local and international levels.

Al-Aiban noted that Saudi Arabia’s cybersecurity ecosystem has undergone remarkable progress in a short span since the creation of the National Cybersecurity Authority and the Saudi Information Technology Company (SITE), which serves as its strategic and technical partner.

Together, these two pillars form the foundation of the Kingdom’s cybersecurity model, which has strengthened national cyber resilience, advanced technological sovereignty, localized critical technologies, and bolstered information sharing and international cooperation.

The National Cybersecurity Authority is the central entity responsible for cybersecurity in Saudi Arabia and the national reference for all related affairs. Its mandate is to safeguard vital interests, critical infrastructure, and national security.

It also aims to drive the growth of the cybersecurity sector, promote innovation and investment, and establish policies, governance mechanisms, frameworks, standards, controls, and guidelines. These efforts are designed to create a secure and reliable Saudi cyberspace that enables economic growth and prosperity.