War could destroy nearly half of Ukraine’s economy this year

Since the incursion began, vast swathes of Ukraine’s infrastructure have been devastated, with many bridges and neighborhoods damaged or destroyed. Some areas, including ports, have been hit by blockades, while farmland around the country has been turned into battlefields.

Ukraine was a major exporter of wheat and sunflower oil before the war, and this year’s planting season is being disrupted by fighting. Farmers also face difficulty accessing machinery and other essential products that would typically arrive through Black Sea ports.

Emerging markets in eastern Europe and central Asia are also expected to be hit hard, with countries including Belarus, Moldova and Tajikistan expected to plunge into recession this year.

“The magnitude of the humanitarian crisis unleashed by the war is staggering. The Russian invasion is delivering a massive blow to Ukraine’s economy and it has inflicted enormous damage to infrastructure,” Anna Bjerde, the World Bank’s vice president for the Europe and Central Asia region, said in a statement.

“Ukraine needs massive financial support immediately as it struggles to keep its economy going and the government running to support Ukrainian citizens who are suffering and coping with an extreme situation.”

Ukraine Finance Minister Serhii Marchenko has emphasized that the government is still functioning, despite the war.

As of late March, roughly 3 million people had lost their jobs, and preliminary estimates suggested that the economy may have already lost approximately $565 billion, Marchenko added, noting the massive destruction of Ukrainian infrastructure.

“I think that the true figures [of total economic loss] would be clear only after the war,” he said.

“The [best] scenario is to end the war is as quickly as possible.”