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THE PLIGHT OF THE UKRAINIAN ECONOMY

Submitted by christian on Wed, 03/16/2022 - 12:54
  1. More than half of Ukraine’s economy has shut down and infrastructure assets worth U.S. $100bn have been destroyed since Russia launched its invasion of the country
  2. Currently around 50 per cent of businesses are not operating and the rest are not operating at full capacity
  3. Even if hostilities were to end right now, the recovery and reconstruction costs are already massive
  4. Ukraine’s gross domestic product could drop between 40 and 60 per cent. Heavy fighting is disrupting activity in 10 of the country’s 24 oblasts. Those areas are typically responsible for 60 per cent of Ukraine’s GDP and 59 per cent of its exports.
  5. Exports have come almost to a halt.
  6. Ports on the Black Sea and the Sea of Azov, which previously handled 77 per cent of Ukraine’s exports, have shut down, either because they have been overwhelmed by the fighting or for fear of mines and piracy by Russia’s Black Sea Fleet.
  7. Most road routes out of the country are swamped with refugees.
  8. Some activity continues, especially in western and central regions where there has been little fighting so far.
  9. The extent of the damage to this year’s grain harvest, and to grains in silos awaiting export, will be critical in determining the damage to Ukraine’s economy and to food supplies globally. Ukraine supplies 12 per cent of the world’s wheat exports, 16 per cent of maize and 40 per cent of sunflower oil.
  10. The harbour of Mariupol: Black Sea ports are major hubs for wheat and corn, but traffic in and out has ground to a halt . If Ukraine were to permanently lose seaports such as Odesa and Kherson, it would have to undergo a far-reaching restructuring of its economy such as opening new trade routes through Poland
  11. Any changes to Ukraine’s territory after the war would determine the size and shape of its economy

 

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THE PLIGHT OF THE UKRAINIAN ECONOMY

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