A struggle to survive. Ukraine’s economy in wartime
A struggle to survive. Ukraine’s economy in wartime

Author(s): Sławomir Matuszak
Subject(s): National Economy, Supranational / Global Economy, Economic policy, Government/Political systems, Fiscal Politics / Budgeting, Peace and Conflict Studies, Russian Aggression against Ukraine
Published by: OSW Ośrodek Studiów Wschodnich im. Marka Karpia
Keywords: Ukraine's economy; Russia's invasion in Ukraine; Budget; Economic crisis; external trade;
Summary/Abstract: The ongoing war in Ukraine has had a disastrous impact on the country’s economy. Its GDP has fallen by approximately a third, and material losses due to the destruction of infrastructure have exceeded US$100 billion and are rising every day. The high inflation rate, the weakened currency and the very high unemployment rate are taking an increasing toll on Ukrainian society. The functioning of the country, including the disbursement of social benefits, salaries and pensions, depends almost entirely on foreign financial assistance. Even though international support for Ukraine has been growing, it remains insufficient, which has forced the government to radically increase public debt. Despite the observed positive trends, such as increased exports (in particular agricultural goods) and the stabilised fuels market, no substantial improvement in the economic situation should be expected before the end of the war. In fact, it seems more likely that it will deteriorate further, given that Russia will most likely continue its attacks on Ukrainian infrastructure, and the future of maritime food exports is open to question.

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