War costs Ukraine about $54B per year - PM

War costs Ukraine about $54B per year - PM

Supporting the Ukrainian Armed Forces and confronting Russia in the war it started costs Ukraine about UAH 2 trillion (about $54 billion) per year.

Ukrainian Prime Minister Denys Shmyhal said this at a conference of Ukrainian ambassadors, according to an Ukrinform correspondent.

"In fact, support for the Armed Forces and the war cost Ukraine about UAH 2 trillion. This is more than the revenue part of a peacetime budget," Shmyhal said.

According to him, in peacetime, the revenue part of Ukraine's budget amounted to UAH 1.3 trillion. Currently, the state survives thanks to financial support from partners, as well as grants and loans.

"We lost about 30% of our economy and enterprises. We lost 3.5 million jobs. In the first year of the war, we lost 29.5% of our GDP. This is less than expected. Businesses adapted and continue to adapt. This year, we expect even a slight increase compared to last year," Shmyhal added.

He noted that it was also possible to increase Ukraine's gold and foreign exchange reserves to an all-time high.

"The National Bank currently has $39 billion [in forex reserves]. This year, we reduced the inflation rate to 12.8% in annual terms. You understand what inflation is in your countries, you can compare," Shmyhal said, addressing the audience.

Shmyhal said earlier that in the first half of 2023, Ukraine's state budget received more than UAH 600 billion, with UAH 672 billion allocated for the army.

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