Ukraine needs up to 486 billion USD to rebuild the country

The cost of rebuilding Ukraine's economy after nearly two years of conflict could be as high as $486 billion, 2.8 times the country's projected economic output in 2023.

This is the figure given in a study conducted by the United Nations, the European Commission (EC), the World Bank (WB) and the Ukrainian government and announced on February 15.

The World Bank said the $486 billion figure covers the period from the start of the conflict in Ukraine on February 24, 2022, through December 31, 2023, quantifying physical damage to buildings and other infrastructure, the impact on people's lives and livelihoods, and the cost of rebuilding.

An apartment building destroyed during the conflict in Izyum, Kharkiv region (Ukraine) in February last year. (Photo: AFP/TTXVN)

$486 billion is the estimated figure for reconstruction over 10 years, up from $411 billion given in March last year.

Of this, housing demand topped the list, accounting for 17 percent, or $80 billion, followed by transportation demand at $74 billion or 15 percent, and trade and industry at $67.5 billion, or 14 percent.

The report also said the direct damage from the conflict amounted to nearly $152 billion, with the damage mainly concentrated in the regions of Donetsk, Kharkiv, Lugansk, Zaporizhzhia, Kherson and Kiev.

Disruptions to economic output and trade, as well as other conflict-related costs such as clearing debris, could add an estimated $499 billion to the cost.

In addition, the above figure of 486 billion USD does not include reconstruction needs that have been met through the Ukrainian government 's budget or through international partners and assistance.

According to the report, Ukraine needs about 15 billion USD for the most urgent repair and reconstruction activities in 2024, of which 5.5 billion USD has been disbursed through the government budget and donor support.

Arup Banerji, World Bank Country Director for Eastern Europe, said that the more than $4 billion in foreign direct investment flowing into Ukraine in the first three quarters of 2023 showed that good investment opportunities were seen in the country.

(Source: vietnamplus)

Source: https://vtc.vn/ngan-hang-the-gioi-ukraine-can-toi-486-ty-usd-de-tai-thiet-dat-nuoc-ar853370.html