Poverty in Ukraine skyrocketed in 2022, from 5.5% pre-war to 24.2 %
Read also: How many Ukrainians will be below the poverty line in 2023, will there be a new wave of migration?
7.1 million Ukrainians fell below the poverty line in 2022, with rural areas being the most severely impacted.
Far more Ukrainians are in danger of falling below the poverty level in 2023, said Arup Banerji, the World Bank’s Regional Director for Eastern Europe.
Unofficial unemployment reached 36%, while inflation hit 26.6% by the end of 2022, he said.
The ongoing war has caused the prices of food, fuel, and services to climb sharply, with some goods becoming 50% more expensive.
Economist Olena Bilan warns that the crisis is deepening, and without significant financial support from the international community, the situation would be even worse.
Read also: World Bank estimates Ukraine’s recovery needs at $411 billion – media reports
“We’ve seen GDP decline by 30% in large part because Ukraine exports 80% of its goods through ports it no longer can access. We’ve had inflation of 26% – again which could have been worse – but people’s salaries have also been flat and the currency has devalued against the dollar by 20%. The biggest challenge is going to be how to create new jobs,” said Bilan.
Read also: Revised World Bank forecast slashes Ukraine’s economic growth expectations
Earlier, the IMF’s five-year forecast for the global economy was the worst in more than three decades, and the Fund believes that poverty and hunger will continue to increase globally.
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