A study by the World Bank, United Nations, European Commission, and Ukraine reveals that rebuilding Ukraine’s economy after Russia’s invasion in February 2022 will cost $411 billion, Reuters reported.
This cost equals 2.6 times Ukraine’s projected 2022 GDP. The estimate released on Wednesday considers the direct physical damage to infrastructure and buildings, the impact on people’s lives and livelihoods, and the cost of “building back better”. It significantly increased from the $349 billion estimate released in September last year.
International Monetary Fund (IMF) announced that its staff had agreed with Ukrainian authorities on a $15.6 billion loan package, which could result in billions more in aid from other organizations once approved by the IMF’s executive board in the coming weeks.
Ukrainian Prime Minister, Denys Shmyhal, stated that their top priorities for this year include energy infrastructure, housing, critical infrastructure, economy, and humanitarian demining. However, the estimated cost for damage and recovery needs does not include data on the loss of infrastructure, housing, and businesses in territories currently occupied by Russian forces.
The rapid needs assessment indicates that Ukraine will require $14 billion for critical and priority reconstruction and recovery investments in 2023, which will require $11 billion in financing beyond that addressed in Ukraine’s 2023 budget.
Transportation makes up the largest portion of these needs, accounting for 22%, followed by housing at 17%, energy at 11%, and agriculture at 7%.
See also: Environmental damage caused to Kharkiv reaches $5bln. The ecological situation in Kharkiv Oblast was discussed at the on-site meeting of the Parliamentary Committee on Environmental Policy and Nature Management in Kharkiv.
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