Ukraine’s Economy Needs Saving as Well
Europe should take the lead to help the war-torn country avoid economic calamity.
Kyiv needs help to keep the lights on.
Photographer: Andrew Kravchenko/Bloomberg
One year since Russia’s invasion of Ukraine, the war is entering a critical phase. Western governments have agreed to supply Ukraine with battle tanks in anticipation of heavy fighting this spring. Such weaponry is essential to the country’s defense, but sustaining the war effort will also require greater attention on another front: Ukraine’s devastated economy.
It’s hard to overstate the war’s economic toll. Ukraine’s economy shrunk by more than 30% in 2022. One-third of the country’s 44 million people have been displaced; more than 8 million have left the country. Tax revenues have collapsed, and spending has been diverted to essentials. Poverty rates have soared and will increase further as the war drags on.