Economic resilience key in Ukraine’s three-year fight for survival

Abstract

We are now entering the fourth year of Russia’s full-on military invasion of Ukraine, yet the aggressor Russia, despite its vast military advantage, has failed to subdue Ukraine. Moreover, the pessimistic predictions that the Ukrainian economy would succumb to hyperinflation, fiscal crisis or some other common affliction of wartime economies have failed to materialise. A prolonged war necessarily depletes economic resources, but preliminary estimates show the Ukrainian economy last year grew by 3.4 % y-o-y . All this in spite of Russia’s bombing of half of the country’s energy production capacity and a worsening shortage of labour.