For post-war restoration, Ukraine will require up to $540 billion — over three times the country’s pre-war GDP — and difficult reforms — CEPR
Researchers from the Centre for Economic Policy Research, a network of economists, have estimated the overall cost of what will have to be done to rehabilitate Ukraine after the war at €200-500 billion ($220-540 billion). The upper bound is over three times Ukraine’s pre-war GDP; the lower number is roughly four times the EU’s foreign-aid budget.
The challenge is vast. Yet, the way in which reconstruction happens and the reforms that accompany it will be just as important as the money spent.
“Political support for difficult reforms will be crucial to make reconstruction a success. It might help that the government seems to see the process as an opportunity to make the economy more modern and competitive, with cheaper, greener energy and more IT,” writes The Economist.
Past reconstructions, meanwhile, suggest that success could also come from closer integration with Europe.
