World Bank: The war pushed Ukraine back 15 years in terms of poverty

The full-scale Russian invasion set Ukraine back 15 years in terms of poverty.

This was stated by the regional director of the World Bank Arup Banerjee, in an interview with the Interfax-Ukraine agency.

"The invasion of Ukraine is a tragedy that has serious human and economic consequences. According to our estimates, another 8 million Ukrainians were below the poverty line, compared to the pre-war period. That is, the country is set back 15 years in achieving its goals for reducing poverty," he noted.

According to him, the situation could have been even worse if not for the pre-war reforms.

"Ukraine managed to balance efforts aimed at increasing competition and economic efficiency with the protection of the most vulnerable segments of the population. An example of this is the ability of the authorities to maintain the most important social assistance and pension payments, even despite the war," he stated.

• As of January 1, 2023, 186 500 people were unemployed with 21 200 vacancies. Accordingly, almost nine officially registered job seekers applied for one vacant position. At the same time, the number of officially registered unemployed people decreased as a result of the deregistration of those who migrated abroad and were mobilized into the ranks of the Ukrainian Armed Forces. However, not all unemployed are registered with the state employment service. According to the estimates of the Ministry of Economy, at the beginning of 2023, the number of unemployed people was 2.6 million people, and according to the estimates of the NBU, about 4.2–4.8 million people.
• According to NBU forecasts, the labor market will feel the consequences of the war acutely, but will also recover slowly. Throughout 2023, unemployment will remain at a high level — about 26%. In the future, it will decrease thanks to the expansion of the demand for labor force against the background of the revival of economic activity, the National Bank predicts.