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Overview

After almost two full years of war, Russia’s invasion of Ukraine is a tragedy with far-reaching human and economic impacts.  This invasion has caused staggering losses to Ukraine’s people and economy, setting back 15 years of development gains and increasing poverty, with an additional 7.1 million Ukrainians now living in poverty.

The invasion also continues to have devastating repercussions for the global economy as it is exacerbating global hunger, inflation, and geopolitical divides.

Ukraine Remains Resilient

The government and the people of Ukraine have shown remarkable resilience in the face of devastation.

Ukraine’s economy is likely to grow by 3.5% in 2023 after contracting by almost 30% in 2022, thanks to ongoing donor support, more stable electricity supply, increased government spending, a better harvest, and the rerouting of some exports through the country’s western borders.

Despite the war, Ukrainians are sending kids to school, keeping businesses running, and providing critical health services.  According to recent World Bank surveys and reviews (see Listening to People survey and Business survey).

  • Social support to vulnerable households remains essential. Pensions (social security) and social assistance make up more than 70% of household income for the poorest 40% of people. 90% or more people receive social payments with no disruption in accessing the payment.
  • Schools remain open. Education continues for children aged 6-18 through in-person, remote or blended learning, including in the regions under hostilities.
  • Health clinics remain open. Nine out of 10 people say community health clinics remain open, including 8 out of 10 people in the regions under hostilities.
  • Companies are adapting by adjusting their product mix, embracing ITC use or relocating internally. International firms remain committed to working in Ukraine.

Ukraine’s Needs

Ukraine’s operating, recovery, and reconstruction needs are staggering. Donor support so far has been impressive as development partners continue to pull together to support Ukraine’s reconstruction, but Ukraine’s current and future financing needs are immense.

Ukraine needs urgent investment for pressing repairs – for energy infrastructure, roads, bridges, housing, schools, and clinics – to ensure that services can be delivered.

The Rapid Damage and Needs Assessment (RDNA2), released in March 2023, estimates that the cost of reconstruction and recovery stands at $411 billion over the next 10 years and combines both needs for public and private funds. The highest estimated needs are in transport, housing, energy, social protection and livelihoods, explosive hazard management, and agriculture. 

However, this amount doesn’t include what is needed to help the government meet the basic needs of its citizens like paying pensions, keeping hospitals open, and keeping kids in schools.

Ukraine Needs in Numbers

  • 22% transport
  • 17% housing
  • 11% energy 
  • 10% social protection and livelihoods
  • 9% explosive hazard management
  • 7% agriculture  

The RDNA2 covered the one year since Russia’s invasion, from Feb 2022 to Feb 2023, and evaluated war impacts across 20 sectors. This analysis is helping the Government of Ukraine and donors to identify the priorities for recovery while continuing to support the provision of core services like health, education and social protection.

The next round of damage evaluation is underway and a new RDNA3 will be released in February 2024.

Last Updated: Dec 15, 2023

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(380 44) 490-6671
5, Alla Tarasova Street, 2nd Floor, Kyiv, Ukraine, 01001