World Bank: Continued War Adds About 2 Million to Ukraine's Population Below the Poverty Line

The World Bank states that the number of Ukrainians living in poverty has increased by 1.8 million since 2020. In a report released on Thursday, June 10, the international organization emphasizes that the poverty rate in Ukraine encompasses 29 percent of the country's population, highlighting that the Russian invasion in 2022 has caused 'devastation to the economy' of Ukraine. According to Arup Banerji, the World Bank's regional director for Eastern Europe, if Ukraine did not receive foreign funding to pay pensions, teachers, doctors, and other sectors, the situation in the country would be 'much worse.' In an interview with Reuters, he stated, 'If international partners, especially the United States, had not sent financial aid for social costs to Ukraine, three million more people would be in poverty.' The World Bank's report, based on a monthly telephone survey of 2,000 households, estimates that about 9 million Ukrainians lived in poverty last year. The total population of the country is currently estimated to be around 32 million. The report emphasizes that the increase in poverty in Ukraine is due to a decline in employment following the Russian invasion, with more than one-fifth of adults who were employed before the war losing their jobs. The World Bank indicates that nearly a quarter of the surveyed Ukrainians at some point in June 2023 did not have enough money to buy their necessary food. Meanwhile, economic growth and reduced inflation in the second half of 2023 have contributed to improving food security in the country. According to the World Bank's regional director for Eastern Europe, the approval of Ukraine's new budget in the U.S. Congress, which came after months of delay, was 'extraordinary news' that helps ensure Ukraine's continued ability to pay wages, pensions, and social support. Although the World Bank report emphasizes the expansion of poverty following the Russian invasion, it notes that 85 to 92 percent of health clinics in Ukraine were fully operational in 2023 despite Russian attacks. The World Bank states that at least 89 percent of children aged 6 to 18 continue their education, with 72 percent of students in actively war-torn areas studying online. The survey also revealed that 97 percent of elderly pensions and 85 percent of social assistance in the country were paid on time, which is a key factor in preventing further poverty. Arup Banerji stated that Ukraine's biggest challenge remains security and ending the war, but Ukrainian officials have done a great job managing the country's economy under these circumstances. He remarked that no economic boom or growth is possible without 'physical security,' saying, 'I have never seen a government do such great things amid so many shortages.' Earlier, Ukrainian officials and the International Monetary Fund reached an agreement on a $15.6 billion aid package to improve Ukraine's economic situation. According to a report published by the IMF on Tuesday, March 21, the support for Ukrainian officials aims to establish financial stability and curb inflation, gradual improvement, and long-term economic growth within the framework of post-war reconstruction and the path to joining the European Union. Meanwhile, the United States also approved new financial and military aid to support Ukraine on April 24.