Indirect financial losses for Ukraine’s economy exceed $1.2 trillion in lost revenue – KSE

The number of bankrupts in Ukraine is increasing to a record high

According to a KSE study, Ukraine’s total indirect losses, including current and projected revenue and value-added losses, are estimated at $1.164 trillion and $385.7 billion, respectively, since the start of the full-scale invasion.

The largest indirect revenue losses relate to productive sectors, including trade ($450.5 billion), industry, including construction and services ($409.9 billion), and agriculture ($83.1 billion). The energy sector ($43.1 billion) and transportation ($38.8 billion) also suffered significant losses.

In addition to revenue losses, Ukraine’s economy incurs significant additional costs. The largest ones are for demining ($42 billion) and the housing sector ($22.4 billion). In the housing sector, the main costs are related to additional citizens’ rent expenses ($15.4 billion).

Government spending on social benefits has increased and continues to grow, amounting to $10 billion. Dismantling destroyed facilities and waste removal across all sectors accounted for $13.4 billion.

Losses also cover other sectors: healthcare ($11.4 billion), education and science ($14.5 billion), financial sector ($4.3 billion), culture, sports and tourism ($7.3 billion), and digital infrastructure and IT sector ($19.3 billion).

The need to restore the housing and utilities sector, where indirect losses are estimated at $7.7 billion, is putting significant pressure on the economy.

Leave a Reply

Your email address will not be published. Required fields are marked *