In the first six weeks of the war, the total damage to the Ukrainian economy exceeded $500 billion
In the first six weeks of the war, the total damage to the Ukrainian economy exceeded $500 billion, but this figure could reach $1 trillion in the long term.
“In the first six weeks of the war, the total damage to the Ukrainian economy exceeded $500 billion. According to government estimates, this figure could increase in the long term to reach $1 billion, or five times last year’s GDP. In 2022 alone, GDP could fall by 30-50%,” Ukrainian Prime Minister Denys Shmyhal wrote in The Economist op-ed. Government portal informed.
As noted, the Ukrainian economy was expected to experience a recovery this year. In 2021, the country’s GDP stood at $200 billion, the highest in its history, despite the Russian occupation of Crimea and parts of the country’s east. “Citizens’ incomes had also increased. In short, Ukraine was changing and rapidly becoming a prosperous and democratic European country,” noted the Prime Minister.
However, in February, Vladimir Putin and his Russian army decided to wipe out those gains, along with so much else, Shmyhal noted. “The transformation of our country and its leaning towards the West ruined the imperial ambitions of the Kremlin. Tens of thousands of Ukrainians have been killed, while millions have been forced to flee to western Ukraine or abroad,” the prime minister wrote.
On February 24, Russian President Vladimir Putin announced a full-scale invasion of Ukraine. Russian troops destroy infrastructure, heavily bombard residential areas of Ukrainian towns and villages with artillery, MLRS and ballistic missiles.