Ukraine’s Cumulative Economic Losses Reach US$700 Billion Over 2022

According to the media on December 13th, Ukrainian Prime Minister Denys Shmyhal said at an economic forum in Paris that it is estimated that Ukraine suffered direct economic losses of US$350 billion as of June 1st. By the end of this year, the figure will increase to US$700 billion. The Ukrainian economy is expected to shrink by 35-40% this year, Shmyhal added. If the recent Russian strikes against Ukraine’s infrastructure continue, Ukraine’s GDP will shrink by up to 50% for the whole year. At the conference, dozens of countries and institutions pledged a total of more than US$1 billion in aid to Ukraine to help it survive this winter. In October, the International Monetary Fund estimated that Ukraine could need as much as US$5 billion per month in aid money to stay afloat if the Russian-Ukrainian war continues. And according to World Bank estimates, the cost of reconstruction and recovery in Ukraine is US$349 billion. This figure is “expected to grow significantly in the coming months” as the conflict continues. Earlier, Ukrainian President Zelensky said that the cost of rebuilding Ukraine would exceed US$1 trillion, and Kyiv is planning to launch a “sponsorship” system to involve Western countries in the process, so that some Ukrainian regions and cities will receive their support. As winter approaches, Russia has stepped up its airstrikes and bombed civilian infrastructure, including the national power grid, in an attempt to demoralize Ukraine by cutting off its heating, water and electricity. Ukrainian defense officials said these frantic moves were prompted by Moscow’s rout and hysteria on the front lines.