War transforms Ukraine's economic structure, expert says
Photo: The war has changed the economy of Ukraine (Vitalii Nosach/RBC-Ukraine)
The war has not only caused significant damage to Ukraine's economy but also altered its industrial structure, RBC-Ukraine reports, citing Volodymyr Vlasyuk, Director of the Ukrpromzovnishekspertiza state enterprise.
"The enemy is also waging war against Ukraine's economy. The biggest losses are our industrial assets, part of the agricultural land that is under occupation, and, of course, we've lost many energy facilities," said Vlasyuk.
According to the Director of the Ukrpromzovnishekspertiza state enterprise, the war has impacted the economy's structure, increasing the share of state governance. At the same time, the share of the manufacturing sector in GDP, which was 10.1-10.3% before the war, has decreased to 8.2%.
For comparison, this share is 18% in Poland and 23% in Türkiye. "So, the share of industry is now very small, and particularly, the manufacturing industry is the backbone of the economy," said Vlasyuk.
According to the Kyiv School of Economics, Ukraine's direct economic losses from the war amounted to about $88 billion, not including the loss of housing, access to education, healthcare, and other social services. At the same time, metallurgy was hit hardest among the industrial sectors.
In 2022-2023, Ukraine's steel industry produced 6.2-6.3 million tons annually, ranking 24-25th globally. According to the Ukrmetallurgprom association, in 2024, Ukraine was able to produce 7.6 million tons of steel, a 22% increase from 2023. The production of pig iron increased by 18% to 7 million tons, and the output of rolled metal grew by 16% to 6.2 million tons.
As of the end of 2023, the World Bank estimated Ukraine's direct losses from the war at nearly $152 billion. The hardest-hit sectors include housing, transport, trade, industry, agriculture, and energy.
