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Since the beginning of the full-scale invasion, Ukraine’s total losses, including current and projected losses in revenue and value-added, are estimated at USD 1.164 trillion and USD 385.7 billion, respectively, the Kyiv School of Economics reported.
According to the Kyiv School of Economics (KSE) analytical team, the largest indirect revenue losses are in productive sectors, including trade (USD 450.5 billion), industry, including construction and services (USD 409.9 billion), and agriculture (USD 83.1 billion). Important infrastructure sectors, including energy (USD 43.1 billion) and transportation (USD 38.8 billion), also suffered significant losses.In addition to revenue losses, Ukraine’s economy incurs significant additional costs. The largest are in the demining (USD 42 billion) and housing sectors (USD 22.4 billion). In the housing sector, the main costs are associated with additional expenses of citizens for renting housing (USD 15.4 billion). At the same time, government spending on social benefits has increased and continues to grow, amounting to USD 10 billion. The cost of dismantling destroyed facilities and removing waste across all sectors is USD 13.4 billion.
Losses also affect other sectors, such as healthcare (USD 11.4 billion), education and science (USD 14.5 billion), the financial sector ($4.3 billion), culture, sports and tourism (USD 7.3 billion), and digital infrastructure and the IT sector (USD 19.3 billion). The need to restore the housing and utilities sector, where indirect losses are estimated at USD 7.7 billion, is also putting significant pressure on the economy.
The Kyiv School of Economics analytical team estimated indirect losses in cooperation with the Ministry for Communities, Territories, and Infrastructure Development of Ukraine, other relevant ministries, and the National Bank of Ukraine. The calculations were made with the support of the Digital Transformation Activity (DTA).
