The war in Ukraine is the fastest growing refugee crisis in Europe since WW2

The war in Ukraine is the fastest growing refugee crisis in Europe since WW2

Macro
Christopher Dembik

Head of Macroeconomic Research

Summary:  In this brief, we expose the basic facts about the Ukrainian refugee crisis. This is part of our continuing efforts to better explain key events affecting the market. It is, of course, too early to understand the exact economic and political implications of this crisis. But we can already say this is the biggest refugee crisis facing Europe since WW2, with already more than 1.5 million refugees. This is only the beginning, unfortunately.


Total number of refugees from 24 Feb to 5 March : 1.5 million (source : UNHCR). Of which, around 1 million are now in Poland. Hungary, Moldova, Slovakia, Romania received more than 400,000 between them. About 5 percent of refugees (mostly coming from the Donbass) have headed east to Russia.

The below map is from 4 March. You can see the situation is evolving very fast on the ground. Three days ago, there were around 649,000 refugees in Poland. Now, it stands at 1 million.

This is the fastest growing refugee crisis in Europe since WW2.

The UNHCR expects that the number of refugees could reach 5 to 7 million in the coming weeks.

For the sake of comparison, there are more than 6.8 million refugees from the Syrian crisis – the world’s largest ongoing refugee and displacement crisis – and about 6 million refugees due to the Venezuelan crisis (a large majority of Venezuelans left the country for economic reasons). This gives you an idea of the scale of what is happening in Ukraine, right now.

The EU has dropped entry requirements to welcome Ukrainian refugeesSlovakia has opened its borders to refugees without travel documents, while the Czech Republic has lifted its ban on Ukrainians crossing without COVID-19 certificates, for instance. On 3 March, the EU interior ministers gave unanimous backing to a plan to grant temporary residency to Ukrainian refugees – this is expected to come into force within days.

Poland is in the front-line : Poland, already home to an estimated 1.5 million Ukrainians (both naturalized citizens and temporary migrant workers), has welcomed around 1 million of all new refugees.

Several fiscal measures have been unveiled to help the refugees and Polish citizens helping them :

Polish households will receive around 1200 zlotys per month (around 251 euros) if they host refugees at home. This will cost approximately 15bn zlotys a year (around 3bn euros).

On top of that, Ukrainian refugees will have access to family benefits such as :

·         the “500+” child benefit programme - 500 zlotys monthly payment for every child under 18 years old, regardless of family income ;

·         Family Care Capital – one-time payment of 12 000 zlotys for the second and subsequent children, regardless of family income ;

·         and a Good Start – 300 zlotys payment for all students starting a school year, regardless of family income.

Political consequences : In several countries, the refugee crisis has created a sense of national unity and put domestic political issues on the backburner. In Poland, a poll by IBRiS for the Rzeczpospolita daily released on 4 March showed that over 90% of Poles support accepting Ukrainian refugees, while 64% say they are personally willing to help them. The center-left opposition is working hand in hand with the center-right government. This is quite unusual. France is going through a rally-round-the-flag moment too. An IPSOS poll released on 5 March shows that President Emmanuel Macron, who is now an official candidate, is above 30 % for the first time. The far-right candidates Marine Le Pen and Eric Zemmour are in the second and third position, respectively. Both are lower than in the previous polls (perhaps due to their previously loud Putin sympathies). However, it is still early days. Much can happen until the first round of the presidential election on 10 April. 

Quarterly Outlook

01 /

  • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Quarterly Outlook

    Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Althea Spinozzi

    Head of Fixed Income Strategy

  • Equity Outlook: Will lower rates lift all boats in equities?

    Quarterly Outlook

    Equity Outlook: Will lower rates lift all boats in equities?

    Peter Garnry

    Chief Investment Strategist

    After a period of historically high equity index concentration driven by the 'Magnificent Seven' sto...
  • FX Outlook: USD in limbo amid political and policy jitters

    Quarterly Outlook

    FX Outlook: USD in limbo amid political and policy jitters

    Charu Chanana

    Chief Investment Strategist

    As we enter the final quarter of 2024, currency markets are set for heightened turbulence due to US ...
  • Macro Outlook: The US rate cut cycle has begun

    Quarterly Outlook

    Macro Outlook: The US rate cut cycle has begun

    Peter Garnry

    Chief Investment Strategist

    The Fed started the US rate cut cycle in Q3 and in this macro outlook we will explore how the rate c...
  • Commodity Outlook: Gold and silver continue to shine bright

    Quarterly Outlook

    Commodity Outlook: Gold and silver continue to shine bright

    Ole Hansen

    Head of Commodity Strategy

  • FX: Risk-on currencies to surge against havens

    Quarterly Outlook

    FX: Risk-on currencies to surge against havens

    Charu Chanana

    Chief Investment Strategist

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperfo...
  • Equities: Are we blowing bubbles again

    Quarterly Outlook

    Equities: Are we blowing bubbles again

    Peter Garnry

    Chief Investment Strategist

    Explore key trends and opportunities in European equities and electrification theme as market dynami...
  • Macro: Sandcastle economics

    Quarterly Outlook

    Macro: Sandcastle economics

    Peter Garnry

    Chief Investment Strategist

    Explore the "two-lane economy," European equities, energy commodities, and the impact of US fiscal p...
  • Bonds: What to do until inflation stabilises

    Quarterly Outlook

    Bonds: What to do until inflation stabilises

    Althea Spinozzi

    Head of Fixed Income Strategy

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain ...
  • Commodities: Energy and grains in focus as metals pause

    Quarterly Outlook

    Commodities: Energy and grains in focus as metals pause

    Ole Hansen

    Head of Commodity Strategy

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities i...
Disclaimer

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000
Australia

Contact Saxo

Select region

Australia
Australia

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.