UKRAINE | 2023 |
Population, million | 39.4 |
GDP, current $ billion | 150.6 |
GDP per capita, current $ | 3820.8 |
Life Expectancy at Birth, years | 69.6 |
Now in itsthird year of war, Russia’s invasion of Ukraine continues to cause staggering losses to people and the economy. The war has also had devastating repercussions for the global economy, which is struggling in the face of steep interest rates, record-high debt levels, and escalating fragility and conflict.
Ukraine Remains Resilient
The pace of recovery in Ukraine is projected to slow to 3.2% this year from 4.8% in 2023, reflecting a smaller harvest and a persistent labor shortage. The country’s economic outlook remains conditional on donor support.
Our latest figures show that poverty in Ukraine has increased by at least 1.8 million people since the start of the war. More than 9 million Ukrainians are now living in poverty. We estimate that an additional 3 million more people would be poor if international partners had not stepped up to provide resources.
While many more people are suffering, the government and the people of Ukraine continue to show remarkable resilience in the face of devastation.
The government has maintained public service delivery, protecting human capital despite the war. Ukrainians are sending kids to school, keeping businesses running, and providing critical health services. According to World Bank surveys (see Listening to People survey and Business survey) as well as data from the Third Rapid Damage and Needs Assessment (RDNA3):
- Social support to vulnerable households is essential:63% of households receive social benefits (old-age pensions, social assistance or payments for internally-displaced persons.) Social benefits account for 73% of income for the poorest 30%. Only 22% of adults employed before the war are working.
- Public services continue. 89% of teachers and health workers are paid without disruption.
- Schools are open. At least 89% of 6-18 year-olds are enrolled in school and receiving lessons through in-person, remote or blended learning, including in the regions under hostilities.
- Health centers provide care. 91% of health centers are open and satisfaction with quality of care is high.
- Companies are adapting by adjusting their product mix, embracing ITC use or relocating internally. International firms remain committed to working in Ukraine.
- In the last year (2023) the Government of Ukraine, with the support of its partners, has met some of the most urgent needs, according to government data. For example:
- $1 billion was disbursed toward housing sector, with most being dedicated to the repair and reconstruction of damaged buildings.
- More than 2,000 km of emergency repairs were made on motorways, highways, and other national roads.
- Local authorities rebuilt approximately 500 educational institutions and the share of educational institutions with bomb shelters increased from 68% to 80%.
Ukraine’s Needs
The Rapid Damage and Needs Assessment (RDNA3), released in February 2024, estimates that the cost of reconstruction and recovery stands at $486 billion over the next decade, and combines both needs for public and private funds. The highest estimated needs are in housing (17%), transport (15%), commerce and industry (14%), agriculture (12%), energy (10%), social protection and livelihoods (9%), and explosive hazard management (7%).
Ukraine’s financing needs are immense.
Reforms and policies that catalyze private sector investment and prioritize an inclusive and green recovery, as well as integrating priority setting and project planning into the medium-term budget planning process, are critical to Ukraine’s successful recovery.
Ukraine is taking much more ownership of its own future and is pursuing reforms to grow the economy, attract private sector investment, and increase tax revenues.
Last Updated:Aug 01, 2024
