How the Russia-Ukraine war is hurting the home front, Pg7

Key Highlights:

• The Russia-Ukraine war, started on February 24, 2022, has led to an estimated $558 billion in post-war construction costs for Ukraine over the next decade.
• Sanctions have impacted Russia's economy, with growth remaining under 1% in both 2025 and projected for 2026.
• Ukraine's GDP contracted by almost 30% in 2022, with a projected recovery to 4.5% in 2026.
• Inflation surged in both countries in 2022, with Russia experiencing 14% inflation and Ukraine also seeing a significant rise.
• Defence spending in Ukraine has exceeded 50% of total spending since 2022, while social spending has declined.
• Estimated casualties in Russia range around 1.2 million, while Ukraine's casualties are between 500,000 and 600,000.

Detailed Insights:

• The war has caused significant economic damage to Ukraine, exacerbating its pre-existing status as one of Europe's poorest nations.
• Rising prices for essential food items, such as bread and rice in Russia and wheat and maize in Ukraine, have strained household budgets.
• High defence spending in Ukraine has led to decreased allocations for crucial sectors like education, healthcare, and social protection.
• Ukraine's gross government debt has surged, accounting for over 109% of the country’s GDP in 2025.
• Russia's military spending may be underreported due to classification under various categories, making it difficult to ascertain exact non-defence expenditure.
• The conflict has resulted in a severe human cost, with substantial casualties and missing persons in both Russia and Ukraine.

Key Concepts Involved:

• GDP (Gross Domestic Product): The total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period.
• Inflation: The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.
• Sanctions: Economic penalties imposed by one or more countries against a targeted country, group, or individual.