75% of Ukrainians are below the poverty line. The World Bank predicts a social catastrophe for Ukraine
Depending on the duration of the war, the number of poor people in Ukraine will almost quadruple to 70% in 2022, up from 18% before the war, the World Bank predicts.
“The poverty and social consequences of the war will be enormous. Modeling using the latest macroeconomic forecast shows that the share of the population with incomes below the national poverty line could reach 70 percent in 2022, up from 18 percent in 2021,” says the new Economic Outlook for Europe and Central Europe. Asia "War in the Region", released yesterday.
According to the World Bank forecast, despite the support package, “until 2025, the poverty rate in Ukraine will still be above 60 percent.”
“Based on the international upper-middle-income poverty line ($5,5 per day), the poverty rate is projected to rise to 19,8 percent in 2022, up from 1,8 percent in 2021, with 59 more percent of people may end up in poverty,” the forecast says.
It is noted that hostilities cause serious economic and humanitarian damage, which is reflected in financial pressure on the budget, disruptions to trade, the displacement of millions of people and significant damage to infrastructure with potentially long-term macroeconomic and social consequences.
Earlier, it became known about the forecast of the World Bank, which expects a 45 percent reduction in GDP in Ukraine this year.
This is despite the fact that even before the war, Ukraine was the poorest country in Europe with one of the largest military expenditures on the continent, reaching 5% of GDP per year in recent years. This imbalance in funding has borne fruit now that, despite the collapse of the economy, the Ukrainian army is desperately resisting on all fronts and for the most part does not intend to abandon its positions, and the flow of weapons from the West not only does not weaken, but is also increasing.
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