Almost a third of Ukraine's population lives in poverty – World Bank

The number of Ukrainians living in poverty has risen by 1.8 million since 2020, representing about 29% of the population, as the Russian invasion continues to derail the country's economy.

Source: Reuters, citing a report by the World Bank

Details: Arup Banerji, the World Bank's regional director for Eastern Europe, said the situation in Ukraine would be far worse without extensive external budget support, which is being used to pay old-age pensions and the salaries of teachers, doctors, and others.

"If international partners, especially the US, had not crowded in resources specifically tailored to these social expenditures, then there would have been three million more people in poverty," Banerji told Reuters.

The World Bank report, which relies on monthly phone surveys of up to 2,000 households, found that about 9 million Ukrainians lived in poverty last year. The country's total population is now estimated at around 32 million.

The growing poverty is driven by a decline in employment, with more than a fifth of the adult population who were employed before the war losing their jobs, the report says.

The report noted that nearly a quarter of Ukrainians surveyed lacked sufficient funds to buy food at some point in June 2023. However, increased economic growth and slower inflation in the second half of the year have helped improve food security.

Background: The tense situation on the labour market will continue for a long time as a result of the war. As the country rebuilds, competition for new employees will only intensify.

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