Economy Ministry: Ukraine's direct losses caused by war total $565 B

"According to our latest estimates, direct non-recurring losses now amount to $565 billion: $119 billion accounts for infrastructure and $91 billion - for civilian facilities losses. And because of the war, Ukraine is short of $54 billion in capital investment," Deputy Economy Minister of Ukraine Ihor Diadiura said during the nationwide telethon, an Ukrinform correspondent reports.

In addition, the losses caused by war have a long-term impact. Thus, according to the Ministry of Economy calculations, this year's losses in Ukraine's GDP will reach at least $112 billion, by 2030 – approximately $1.2 trillion.

According to Diadiura, two approaches are used to estimate losses, the amount of which is constantly changing. The first is the calculation of direct losses from destruction. The cost of the destroyed facility (house, road, school, etc.) is estimated "from scratch".

The second approach is the calculation of the total impact of hostilities. "The destructive impact of war is not limited to the destruction of specific buildings. We are talking about underinvestment, loss of jobs, blocking of trade," said Diadiura.

He noted that it would take years to recover the economy.

As reported, Minister of Finance of Ukraine Serhiy Marchenko said on March 24 that international partners had provided Ukraine with more than USD 2 billion and EUR 1 billion in assistance since the beginning of the war.

The Ministry of Economy estimates the GDP decline to reach 16% in the first quarter, while the annual decline may be about 40% of GDP.

Ukraine needs to create a special economic recovery fund similar to European development funds and comparable in size.

Photo credit: Stringer, Anadolu Agency

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