More than 97 billion dollars are the direct consequences of the attack – The reconstruction of the country will cost almost 350 billion dollars
Russia’s invasion of Ukraine caused over $97 billion in direct damage to the Ukraine until June 1, but rebuilding the country is likely to cost nearly $350 billion, according to a report released today by the World Bank, the Ukrainian government and the European Commission.
According to the report, Ukraine suffered $252 billion in losses through hits to the country’s economy and production as well as extra costs related to the war, while the displacement of a third of Ukraine’s residents is expected to skyrocket. poverty rate to 21% from just 2% before the war.
Overall, the report estimates that the reconstruction needs of Ukraine potentially reaching $349 billionfor the period through June 1 — about 1.6 times the national GDP of $200 billion in 2021.
Of this amount, 105 billion is required in the short term to address urgent needs such as the reconstruction of thousands of damaged schools and over 500 hospitals.
It is also imperative to prepare for the coming potentially severe winter by rebuilding damaged homes, restoring heating and purchasing natural gas.
These estimates are preliminary and costs are likely to increase as the war continues, the report notes.
“The impact of the Russian invasion will be visible for generations, with families displaced and separated from each other, disruptions to human development, destruction of cultural heritage and reversal of the positive trajectory of the economy and the poverty index,” the report noted.
Arup Banerjee, the regional director of the World Bank’s Eastern Europe branch, said the findings were based on a “very robust” and internationally accepted methodology and should be included in the Group of Seven reconstruction summit scheduled for to be held in Berlin on October 25.
As he said, Ukraine’s initial estimates that $750 billion would be needed to rebuild the economy may have been inferred from the extent of material and financial damage, but it is not clear what exact methodology was used for that estimate.
Oleg Ustenko, a senior economic adviser to Ukrainian President Volodymyr Zelensky, said Ukraine needed commitments from donor countries to continue providing $5 billion in funding each month for the next year.
Banerjee agreed that Ukraine will need external support in 2023 unless there is “some really drastic change in the course of the war”.
He said the economy is in “slightly better shape” than expected and the country’s GDP is now showing a contraction of 30-35% in 2022 instead of the 45% originally forecast.
RES-EMP
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I am currently a news writer for News Bulletin247 where I mostly cover sports news. I have always been interested in writing and it is something I am very passionate about. In my spare time, I enjoy reading and spending time with my family and friends.
