WASHINGTON: Rebuilding Ukraine's economy after Russia's invasion nearly two years ago is expected to cost $486 billion, 2.8 times its 2023 expected economic output, a new study by the World Bank, United Nations, European Commission and the Ukrainian government found.
The estimate released on Thursday covers the period from Russia's invasion on Feb. 24, 2022, through Dec. 31, 2023, and quantifies the direct physical damage to buildings and other infrastructure, the impact on people's lives and livelihoods and the cost to "build back better," the World Bank said.
That 10-year cost estimate is up from $411 billion last March, with housing needs topping the list at $80 billion or 17%, followed by transport needs of $74 billion or 15%, and commerce and industry at $67.5 billion, or 14%.
"The $486 billion is an unfathomably large amount, and, of course, it reflects real needs," said Arup Banerji, World Bank regional country director for Eastern Europe, although he noted that the high rate of damages seen in the first months of the war had slowed sharply.
The report said direct damages from the war had reached almost $152 billion, with losses concentrated in regions such as Donetsk, Kharkiv, Luhansk, Zaporizhzhia, Kherson and Kyiv. Disruptions to economic output and trade, as well as other war-related costs, such as removing debris, would likely add another $499 billion, it said.
The new estimate excludes reconstruction needs already met through the Ukraine state budget or through partners and international support.
The losses it maps out are staggering, with about 2 million housing units - about 10% of the total housing stock of Ukraine - either damaged or destroyed, as well as 8,400 km (5,220 miles)of motorways, highways, and other national roads, and nearly 300 bridges. — Reuters
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