ECONOMIC POLICY OF POST-WAR RECOVERY IN UKRAINE
Authors:   State Tax University, Paranytsia Nadiia , Telishchuk Myroslava ,   State Tax University, Skliarov Danyil ,   State Tax University
Published: January 2025

The article delves into Ukraine’s economic landscape amid the ongoing challenges of war, providing a nuanced view of how the nation has adapted and found some avenues for recovery despite unprecedented adversity. Ukraine's gross domestic product (GDP) growth reached 5.3% in 2023—a milestone attributed to several key factors, including the resilience and adaptability of its business sector, record agricultural harvests, and the creation of new international logistics channels. These aspects of economic activity, coupled with strategic shifts to adjust to war-time realities, have allowed Ukraine to establish some level of economic stability. Central to Ukraine's economic growth has been substantial government investment in defense, as well as in the goods and services necessary to sustain its war effort. Government spending on defense has not only bolstered the economy through direct financial injections but has also indirectly supported industries related to national security and war logistics. For 2024, this government support is projected to remain a fundamental pillar for economic resilience, ensuring that the nation maintains an active financial flow to critical sectors. Additionally, economic growth is expected to benefit from a revival in exports and an increase in external demand for certain Ukrainian products, although these are subject to considerable risk. The unpredictability of the war’s impact on business operations and investor confidence continues to cast a shadow over Ukraine's economic prospects, with potential setbacks in investment and disruptions in economic activity a constant concern. A vital part of Ukraine's strategy involves close cooperation with international allies to secure the financial resources needed to support the country’s international reserves and address its budgetary shortfall. In particular, Ukraine has actively engaged with global partners to obtain financial assistance that will reinforce its economic stability during this period of heightened need. Though there are lingering uncertainties regarding the duration and consistency of this international support, Ukraine remains optimistic about the possibility of further financial backing from the G7. In light of the persistent challenges, the government is keenly focused on designing a post-war economic strategy that balances between critical social support, initiatives to drive economic growth, and a controlled approach to inflation to prevent further destabilization. Ultimately, the article highlights that Ukraine’s economic recovery is contingent on a carefully balanced strategy that supports immediate needs while laying the groundwork for long-term resilience. This balancing act involves strengthening key economic indicators, fostering investor confidence, and creating a stable environment for both local and foreign investment. By combining immediate support measures with a forward-looking vision for sustainable development, Ukraine aims to create a post-war economy that is resilient, competitive, and better positioned for future growth. The article also serves as a reminder of the complex interplay between political stability, economic policy, and international cooperation in shaping a nation’s recovery path.