As Ukraine tensions rise, many economists debate the effect that the strain will place on economic growth globally. It is reported, that the optimistic spending that was recently recovered in Europe has been noticeably dwindling downward, most likely due to political tensions over Ukraine.
Tuesday, several financialists report that the Ukraine crisis will hit the European Union the hardest. Despite this, European consumers continue to remain rather optimistic towards jobs and inflation. Wall Street says that this is reflective of the concern for Ukraine tensions weighing heavier on businesses than on consumers. Unfortunately, businesses control the direction for an improved European economy. If their fears are strong enough, it ultimately paves way for continued hesitation for European businesses to hire and invest; further drawing vulnerability to the Euro.
In a poll conducted by The Telegraph, 55 percent of EU citizens want to see stabilization in Ukraine, but not at the expense of having to involve their own leaders or any form of military. 44 percent of the poll agreed that their governments should place a sanction, and that monetary impositions should be placed as well.
Stabilizing Ukraine’s economy could prove rather difficult without complete dislodge from Crimea -- and with continued growth in deficit as other countries try to lend financial support. In fact, yesterday the European Union agreed to loan Ukraine €1 billion to assist in stabilization. Columnist Daniel Gros from the Business Standard says that you’d nearly have to restart Ukraine’s economy completely in order to truly stabilize it. The price of gas being one factor into effectively stabilizing Ukraine’s economy.
As of Tuesday, the price of global oil reportedly rose. WTI experienced a 44 cent gain, there was an 89 cent gain in London, and News Asia says that traders are closely monitoring developments in Libya, “where the state National Oil Corporation is to resume exports.”