Kiev estimates: – This is how much it could cost to rebuild Ukraine

According to Reuters calculations, Ukraine has lost about 22 percent of its territory to Russia since 2014, including the port city of Mariupol and parts of the coast. The Ukrainian economy was partially paralyzed. In fact, the World Bank and the International Monetary Fund (IMF) estimate that the economy will shrink by 45 percent by 2022. The exact cost is difficult to quantify, for example, because it is unclear how much Ukraine spends on its military and the fighting.

War for Russia probably cheaper
While the war is also expensive for Russia, the cost is likely to be relatively lower. The Central Bank of Russia predicts that the economy will shrink by four to six percent this year. That is less than the originally announced drop of eight to ten percent. It is also not clear how much Moscow spends on its army. The same is true of the West’s sanctions against the Russian economy. What is certain is that the country is now struggling to obtain certain goods, such as microchips, and has become disconnected from Western financial markets.

Effects on other countries
However, the economic consequences of the war in Ukraine do not stop at its borders. For example, prices for energy, wheat, metals and fertilizers have risen. A wave of inflation was recorded worldwide. Although the IMF forecasts global economic growth of 3.2 percent for this year, it is still below last year’s 6.1 percent. Since the outbreak of the war, the European Commission has lowered its GDP growth forecast from 4% to 2.7 percent in 2022. If Russia completely cuts off its gas supplies to Europe by the end of the year, global growth would slow even further. That applies to both this year and next year.