EU may need to spend 0.5% of GDP to help Ukrainian refugees
“I really believe we’re underestimating the medium-term impact of this war,” said OECD Chief Economist Laurence Boone. “The longer the war will last, the more uncertainty we have and the more worried we’re getting because uncertainty deters consumer purchases and business investment.”
The Russian war in Ukraine will have long-lasting consequences on energy security, food security, digital security, payment systems, and trade in addition to the problem of increased refugee flows all over the world, Boone explained.
If the number of people fleeing Ukraine reaches 5 million, the costs of helping them settle in and adapt could reach 0.5% of the EU’s GDP, with about 12,500 euros ($13,835) typically needed per refugee, according to the OECD’s estimates.
“It’s a lot, but it’s really worth it,” she said.