Global economic outlook grows murkier after Russian setback

As Ukraine escalation raises the risk to the world economy, it is time to hunker down for the rough ride ahead

“We are at war”, says French President Emmanuel Macron.” German Chancellor Olaf Scholz sounds only a little less sombre. “We live in serious times… but we are prepared”. After more than six months of relatively low-intensity warfare in Ukraine, there is the prospect now of a substantial escalation on both the economic and military fronts. That bodes ill for the world economy. India’s policymakers need to brace for a rougher ride than thought until recently.

Russia has shut down the Nord Stream 1 gas pipeline that supplies gas to Europe. Last year, the pipeline provided an estimated 35 per cent of