The level of poverty in Ukraine increased 10 times because of the war  News of Kharkiv and Ukraine

The level of poverty in Ukraine increased 10 times because of the war News of Kharkiv and Ukraine

As a result of the full-scale war unleashed by Russia, the level of poverty in Ukraine increased 10 times.

Such an estimate made public regional director of the World Bank for the countries of Eastern Europe, Arup Banerjee, writes Hromadske with reference to Reuters.

According to Banerjee, 25% of Ukraine’s population will live in poverty by the end of the year (compared to just over 2% before the war), and by the end of next year this figure could rise to 55%.

He noted that attacks by Russian troops on civilian infrastructure in Ukrainian cities far from the front line will complicate the dire economic situation Ukraine is facing.

The rapid pace of recovery after massive Russian attacks on energy facilities shows the effectiveness of the system during martial law. But Russia’s change in tactics increases the risks given the approaching cold weather, Banerjee said.

“If this continues, the prospects will be much, much harder. As winter really starts to bite… If houses are not repaired… there could be another internal wave of IDP migration,” he said.

However, according to the official, the reaction to the call of President Volodymyr Zelenskyi during the meetings of the International Monetary Fund and the World Bank, which took place last week, “was encouraging.” According to him, most countries have indicated that they will financially support Ukraine during the next year.

What is the situation with the economy?

In May, the President of Ukraine, Volodymyr Zelenskyi declaredthat Ukraine in the conditions of war needs 5-7 billion dollars of international support every month.

In July at the National Bank reported, that since the beginning of the full-scale Russian invasion, Ukraine has already received almost 13 billion dollars in financial aid from international partners. And in August, Ukraine received another $4.7 billion in aid, bringing its international reserves up 13.6% to $25.4 billion.

The National Bank says that the current volume of international reserves will allow Ukraine to finance imports for 4 months. This is enough to fulfill the obligations of Ukraine and current operations of the government and the National Bank.

Economy Minister Yulia Svyridenko at the end of August toldthat the economy of Ukraine should stabilize in 2023. Forecasts for gross domestic product in 2023 range from a further contraction of 0.4% to growth of 15.5% after a projected contraction of 30-35% this year.


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