Direct losses in Ukraine’s physical assets and infrastructure due to the war with the Russian Federation are currently assessed to be around USD 140 billion, accounting for about 2/3 of the country’s pre-war GDP.
Sergiy Nikolaychuk, Vice President of the National Bank of Ukraine said this in an interview.
He also mentioned eight million people who have left the country since the beginning of the war, accounting for more than 20 per cent of Ukraine’s population before the full-scale war.
“These are dramatic numbers, but the economy is still alive. We see some adjustments of the economy to the new conditions and actually for this year we expect that we will even have some small but slow growth of 0.3 per cent of GDP,” Nikolaychuk said.
According to him, the NBU estimates Ukraine’s GDP decline at 30% for 2022 but it could have been bigger if society and business had not demonstrated high adaptability to new conditions.
“Unfortunately, in the fourth quarter Ukraine faced continuous terrorist attacks from Russia on our energy infrastructure and that also put an additional drag on our economy,” the official added.
As a reminder, according to the World Bank’s estimates, the recovery of Ukraine’s economy after the end of the war unleashed by the Russian Federation will cost $411 billion. As Prime Minister of Ukraine Denys Shmyhal specified, this sum did not include the loss of infrastructure, housing, and business in the territories occupied by Russia.