The five charts below analyze how the Russian invasion affected Ukraine’s economy and how the country managed its wartime budget.
economic hardship
Ukraine’s economy has shrunk by a third
Even the collapse of the Soviet Union did not affect Ukraine’s economy as much as the Russian invasion
Source: Bloomberg
Russia’s aggressive behavior was an unprecedented blow to the Ukrainian economy. Gross domestic product (GDP) could grow by 0.3% this year amid weak economic activity, according to central bank projections. The economy is expected to pick up gradually once security risks subside.
budget
Central Bank of Ukraine and USA Top Donors List
Ukraine’s budget received $51.3 billion in funding from bonds, loans and grants
Source: Ministry of Finance of Ukraine
Ukraine relied on domestic and foreign resources for its war budget last year. Domestically, war bonds issued by the central bank and the Ministry of Finance were the main support. The biggest foreign supporters were the United States, the European Union (EU), and the International Monetary Fund (IMF).
domestic finance
Central Bank Support to Government ends
The government of Ukraine can no longer rely on the central bank to continue buying bonds as it did last year
Source: Ukrainian Ministry of Finance and central bank
Ukraine’s central bank, which played a key role in financing the country’s budget in the months after the invasion, cut bond purchases to zero in January. The government’s hope is that additional support from the financial authorities will not be required.
military assistance
Military Aid Provided to Ukraine Since the Start of the War
US is by far the biggest contributor
Sources: US Department of Defense, UK Parliament, German government, Polish Ministry of Defence, Canadian Government, SVT TV, Australian Ministry of Defence, Norwegian Government, Australian Government
Ukraine receives the largest amount of military aid from the United States. In Europe, the United Kingdom, Germany, and Poland were high.
revival
Ukraine War Reparations
Ukraine estimates war-related damages totaling $136 billion
Source: Center for Economic Strategy of Ukraine
Ukraine estimates that civilian homes were hardest hit by Russian missile and artillery attacks. Roads, bridges, power lines and power plants were also targeted. Environmental damage has also been devastating, with land mines polluting land and Black Sea dolphins being killed by naval operations.
news-rsf-original-reference paywall">Original title:Five Charts Showing the Impact of the Russian Invasion on the Ukraine (抜粋）
