Economic Hardship
The Russian invasion dealt an unprecedented blow to Ukraine’s economy. Gross domestic product may grow by 0.3% this year amid weak economic activity, the central bank estimates. The economy is expected to slowly pick up pace when security risks subside.
Budget Funding
Ukraine relied on a combination of foreign and local sources to finance its wartime budget last year. The main domestic support came from the central bank and war bonds issued by the Finance Ministry. The US, the European Union and the International Monetary Fund were the biggest international backers.
Domestic Funding
Ukraine’s central bank played a crucial role in funding the country’s budget in the first months of the war. It cut down bond purchases to zero in January, with the government hoping further support from the monetary authority won’t be necessary.
Military Aid
Ukraine is receiving most of its military support from the US, while the UK, Germany, and Poland are among its top European backers.
Reconstruction
Ukraine estimates that most of the damage from Russian missiles and artillery was dealt to people’s homes. Rockets also targeted roads, bridges, electric lines and power plants. The toll on the environment is heavy, from land contaminated with mines to Black Sea dolphins dying due to naval military activity.
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