The World Bank asserts that poverty in Ukraine has increased tenfold as a result of the war
Russia’s attacks on civilian infrastructure in Ukrainian cities far from the frontlines will complicate the country’s dire economic situation, which has already seen poverty tenfold this year, World Bank regional director for Europe Arup Banerji said. The senior official detailed that the change in the Russian offensive has increased risks. “If this continues, the prospects will be much, much more difficult,” he said. “If winter comes, in December or January, and if the houses are not repaired, there may be another internal migration wave of IDPs,” he said.
Ukrainian President Volodymyr Zelensky this week estimated that Ukraine needs about $55 billion: $38 billion to cover next year’s estimated budget deficit and another $17 billion to start rebuilding critical infrastructure , including schools, homes and energy facilities. Ukrainian officials have stressed that they need continued and predictable financial support to keep the government running while critical repairs and reconstruction begin.
“Most countries have indicated that they would provide financial support to Ukraine next year, so that’s a very positive response,” Banerji said. The World Bank estimates that 25% of the population will live in poverty by the end of the year, compared to just over 2% before the war. That percentage could rise to 55% by the end of 2023.
IMF Managing Director Kristalina Georgieva said earlier this week that Ukraine’s international partners had pledged $35 billion in grants and loans to Ukraine in 2022, but its funding needs will remain “very large” in 2023 . Next week, IMF staff will meet with Ukrainian officials in Vienna to discuss Ukraine’s budget plans and a new IMF surveillance tool. (Portal)