According to a senior World Bank official, Ukraine's economy will require assistance from abroad for a long time.
Anna Bjerde asserts that the nation, which has been devastated by war, "also has a lot of potential to turn a lot of its assets into economic opportunity and recovery.".
Speaking in front of a significant international gathering on rebuilding the Ukrainian economy in London, the managing director for operations.
The economy of the nation shrank by 29 percent in 2017 to just over $140 billion (£109 billion).
The Ukraine Recovery Conference, which is focusing on the role the private sector can play in the country's reconstruction, is important venue for the World Bank and other multilateral development organizations. .
Since fighting with Russia has continued, the total cost of reconstruction has increased from the March estimate of $411 billion.
The co-hosts, UK Prime Minister Rishi Sunak and Ukrainian President Volodymyr Zelensky, will speak first at the conference.
As he tells the delegates, Mr. Sunak is about to announce $3 billion in World Bank loan guarantees, saying: "As we've seen in Bakhmut and Mariupol, what Russia cannot take it will seek to destroy. They want to harm Ukraine's economy in the same way. ".
"President Zelensky's administration is committed to enacting reforms that will make it more transparent, open, and investment-ready. ".
To get through this year, Ukraine urgently needs $14 billion from international donors.
This money, according to Ms. Bjerde, will be used to pay for "essential social expenditures" like pensions, medical care, and the salaries of teachers and doctors. Additionally, it will aid in funding crucial infrastructure repairs, such as those required for the power system and roads, which are essential for the ailing economy to function.
Despite the hardships that many economies around the world are experiencing as a result of the conflict in Ukraine, Ms. Bjerde is optimistic that the funding will come in. "I believe that Ukraine has received a tremendous amount of commitment, and I believe that will continue. Just too much depends on Ukraine. " .
According to her, the hundreds of millions of dollars that have already been donated have "helped arrest what otherwise would have been even more devastating humanitarian impacts on the country." She also stresses that Ukraine will also need to help itself.
Given that agriculture is a significant source of income for Ukraine, this could prove challenging. It is a significant global source of crops like corn, wheat, and sunflower. Despite a deal to ease some exports, which is due to expire the following month, output is predicted to drop from 53 million tonnes in 2022 to about 45 million tonnes in 2019.
Damaged infrastructure makes it more difficult to export goods from Ukraine, which contributes to some of this.
The American Chamber of Commerce in Ukraine (AmCham Ukraine) conducted a survey that highlighted these difficulties. According to the data, 49% of businesses have experienced building damage. Additionally, it was discovered that during the 15 months of fighting, 32% of businesses lost employees to death and 27% suffered injuries.
Nevertheless, it also revealed that 74 percent of businesses want to employ Ukrainians in current projects, and 63 percent of businesses plan to invest in new projects, plants, or facilities.
The president of AmCham Ukraine, Andy Hunder, named a few of the topics that will be discussed at the conference in London. The majority of Ukrainian businesses, he claimed to the BBC, "don't plan to make claims for war damages until proper and transparent compensation mechanisms are developed and eventually put into place.".
The two-day gathering of political and business leaders will also examine whether a war insurance program can be implemented to encourage some of the private sector investment that the World Bank claims is essential for reviving the economy.
According to a separate survey, businesses have seen a 53 percent average decline in sales from pre-war 2021. According to the report, larger companies have experienced more disruption than smaller businesses.
Despite the damage to the buildings of large corporations like Coca-Cola, Mondelez, and Unilever, some have already begun investing in Ukraine's reconstruction.
According to Mr. Hunder, in order to ensure investment in Ukraine's reconstruction and recovery, "comprehensive war risk insurance for investors has a key role to play.".
The government of Ukraine is being assisted by Blackrock and JP Morgan in securing private sector funding for reconstruction. According to Ms. Bjerde of the World Bank, this is essential for creating the jobs and stimulating innovation that will fuel Ukraine's economic recovery.
"There will be an adjustment period even if the war ended today; the economy has undergone significant change. Ukraine's dynamics and demographics have changed, and poverty has increased. Therefore, assistance will be required in the future.
