Ukraine faces economic crisis without quick EU aid, finance minister warns (2024)

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Ukraine faces economic crisis without quick EU aid, finance minister warns? ›

Ukraine faces economic crisis without quick EU aid, finance minister warns. The country needs Western help from the start of 2024 to fill an estimated $29 billion budget gap, Serhiy Marchenko says.

Manufacturing is an extremely important sector of the Ukrainian economy, in terms of productivity and revenue earned. Products manufactured in the country include ferrous metals, transportation equipment and other types of heavy machinery, a variety of chemicals, food products, and other goods.

Despite these improvements, Ukraine remains the poorest country in Europe, which some have attributed to high corruption levels and the slow pace of economic liberalisation and institutional reform.

Russia's invasion of Ukraine has also had devastating repercussions for the global economy, which is struggling in the face of steep interest rates, record-high debt levels, and a climate of escalating fragility and conflict.

Nevertheless, Ukraine has demonstrated resilience, with its GDP reaching approximately $150.6 billion in 2023 and a GDP per capita of $3,820. The economy grew by 4.8% in 2023, though growth is projected to slow to 3.2% in 2024 due to a smaller harvest and labour shortages.

As of 2024, the average gross monthly salary in Ukraine stands at approximately 18,491 UAH (Ukrainian Hryvnia), equivalent to around €445. However, it's essential to note that salary levels can vary significantly depending on factors such as geographic location, industry, and job role.

Ukraine is normally the world's top producer of sunflower meal, oil, and seed and the world's top exporter of sunflower meal and oil.

1. Luxembourg. Luxembourg is one of the richest countries in Europe. With a population of around 650,000, it boasts a remarkable GDP per capita of over $115,000, making it the highest in the world as of 2022.

Luxembourg

This country controls the pandemic duration better than any other European country. In 2020, they had a growth rate of minus 0.9%, and the country will grow by 7% in 2021. Hans Luxembourg is at the top of the list of the richest countries in the world by GDP 14,3740 USD.

Is Ukraine in debt? ›

Public Debt in Ukraine

Public debt averaged 64.0% of GDP in the decade to 2022, above the average for Eastern Europe of 32.5% of GDP. Public debt in Ukraine was 78.5% of GDP in 2022.

Ukraine literacy rate for 2021 was 100.00%, a 100% increase from 2020.

The export of Ukrainian goods to the USA in 2022 amounted to $1.477 billion (decrease of $411.7 million (-21.8%) compared to 2021 - $1.8887 billion). The main export groups in 2022: pig iron ($399 million), pipes ($237 million), sunflower seeds ($95 million), juices ($87 million) and soybeans ($56 million).

Agricultural products are Ukraine's most important exports. In 2021 they totaled $27.8 billion, accounting for 41 percent of the country's $68 billion in overall exports.

How Much Aid Is Actually Going to Ukraine? The Ukrainian government receives most, but not all, of the funding in the five U.S. supplemental appropriations bills passed since the invasion. From the total $175 billion in U.S. spending, $107 billion worth of aid goes to the government of Ukraine.

The World Bank estimates the cost of rebuilding Ukraine at over $480 billion – around eight times the amount Congress authorized in the latest round of U.S. military aid. That tremendous sum reflects the fact that postwar recovery is a complex, expensive process.

Agriculture and fishing. Partly because of rich soils and a favourable climate, Ukraine's crop production is highly developed. Its output of grain and potatoes is among the highest in Europe, and it is among the world's largest producers of sugar beets and sunflower oil.

Minimum wage increase

Starting from the beginning of April 2024, the minimum wage in Ukraine will be increased by UAH 900, rising from UAH 7100 to UAH 8000 per month. The law also provides for an increase in fines for employers who violate labor laws.

What role does Ukraine play in global food security? Ukraine is one of the world's major grain producers. The country mainly grows and exports wheat, corn and barley.