As Ukrainians prepare to enter their fourth year dealing with the harsh daily realities of life during conflict with Russia, few will be musing on the comparative economic health of the warring nations. However, inflation figures released either side of the border showed the continued toll the conflict has had on citizens of both countries \u2013 with price rises running at 9.5% in Russia and 12% in Ukraine.<\/p>\n
Despite Russia\u2019s lengthy offensive, Ukraine has a brighter future as an independent nation than Moscow propaganda would have anyone believe.<\/p>\n
Looking to the next 10 years, Ukraine has a wealth of metal deposits, many of them rare, that some estimates put at $11tn.<\/p>\n
The country\u2019s tax system continues to function, too. December\u2019s tax revenues registered a 50% improvement on the previous year as corporations paid more tax, and income tax recovered by about 60%. Another boost came from a 150% increase in excise duty receipts, filling the state\u2019s war chest while most welfare and public service spending was, and still is, paid for by overseas agencies, including loans from the International Monetary Fund.<\/p>\n
The labour market remains less vibrant than before the full-scale invasion, according to Maksym Samoiliuk at the Centre for Economic Strategy in Kyiv. Data on the number of people out of work from the Info Sapiens research agency estimates that the unemployment rate was 16.8% in January, which Samoiliuk says still leaves employers short of workers \u201cnot least due to Ukrainians\u2019 migration abroad and mobilisation into the defence forces\u201d.<\/p>\n
The manufacturing of iron and steel remains a fraction of its prewar level. Before the war, factories were producing about 1.5m tonnes of steel a month compared with an average 0.6m last year.<\/p>\n
It\u2019s one of the major reasons, along with lower food exports, that Ukraine\u2019s annual national income remains about 20% lower than its prewar level.<\/p>\n
A conference in Rome this summer to discuss Ukraine\u2019s recovery is expected to hear that at least $500 bn will be needed to reconstruct the country once the fighting stops.<\/p>\n
Source: The Guardian.<\/a><\/p>\n