It also stated that Ukraine had suffered $252 billion in losses due to disruptions in economic flows and production, as well as additional expenses related to the war, and that the displacement of one-third of all Ukrainians was expected to raise the country’s poverty rate to 21%, up from 2% before the war.
Overall, the report estimated Ukraine’s reconstruction needs at $349 billion as of June 1, or roughly 1.6 times the country’s $200 billion GDP in 2021.
In the short term, $105 billion was required to address urgent priorities such as rebuilding thousands of damaged or destroyed schools and more than 500 hospitals.
It was also critical to prepare for the impending, harsh winter by repairing homes, restoring heating, and purchasing gas. According to the report, all of the figures were preliminary and would most likely rise as the war progressed.
“The impact of the invasion will be felt for generations, with families displaced and separated, disruptions to human development, destruction of intrinsic cultural heritage and reversal of a positive economic and poverty trajectory,” it said.
The findings, according to Arup Banerji, World Bank regional country director for Eastern Europe, are based on a “very strong” internationally accepted methodology and should underpin a Group of Seven recovery conference scheduled for October 25 in Berlin.
He said Ukraine’s initial estimates of $750 billion in economic losses were likely extrapolations from the damage and economic losses, but it was unclear what methodology was used to arrive at that figure.
According to Ukraine’s Prime Minister Denys Shmygal in a Telegram post, the report provided the first comprehensive damage assessment of the war’s impact on Ukraine and laid the groundwork for funding its recovery plan.
Oleg Ustenko, a senior economic adviser to Ukrainian President Volodymyr Zelenskiy, said Ukraine needed donor countries to commit to continuing to provide $5 billion in funding each month for the rest of the year.
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