The war destroyed 35% of Ukraine’s economy – UN

Olena Kovalenko09:07, 26.01.23

Due to the Russian invasion, the monthly budget deficit of Ukraine is estimated at 5 billion dollars.

As a result of the full-scale war waged by Russia against Ukraine, the Ukrainian economy  shrank by more than 35%. 

According to  the UN report , due to the Russian invasion, the monthly budget deficit of Ukraine is estimated at 5 billion dollars.

According to UN economists, although the European Union plans to allocate 18 billion euros for economic support to Ukraine in 2023, this may not be enough.

“The prospects of the Ukrainian economy in 2023 and 2024 are very uncertain and will depend on many factors, in particular, on the cessation of hostilities and the start of reconstruction work,” economists note.

“Ukraine’s economy has shrunk by more than 35% in 2022 due to massive destruction of infrastructure, including railway and other connections with neighboring countries, road network and bridges. Production and trade activities have been disrupted, there are large losses of labor force due to migration or conscription.” – the report says.

According to the document, the Russian economy’s attack on energy infrastructure facilities, blocking of ports and damage to metallurgical plants have a significant impact on Ukraine’s economy.

Direct monetary financing of the National Bank covered about a third of the total state spending needs. This led to the depletion of foreign exchange reserves, which pushed Ukraine to devaluation of the national currency.

Ukrainian economy in war conditions:

On March 18, 2022, the International Monetary Fund announced that it expects Ukraine’s GDP to fall by 35% in 2022 due to Russia’s military invasion.

On May 6, 2022, the institution of economic research and political consultations announced that it will take 5 to 10 years to restore the Ukrainian economy .

On May 28, 2022, the executive director of the Center for Economic Strategy, Hleb Vyshlinskyi, predicted that the Ukrainian economy would fall by a third due to the war .

On October 12, 2022, the IMF predicted the fall of the Ukrainian economy in 2022 and decided not to make forecasts for Ukraine for the next 5 years.

In 2022, it was expected that the fall in GDP will be 35%, and inflation will be 30%. The fund will not make forecasts for Ukraine for the next 5 years due to the high degree of uncertainty caused by the war unleashed by Russia.

(C)UNIAN 2023

One comment

  1. The economy will recover again after the cockroaches have been eliminated. As a matter of fact, it will boom in the coming years.

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