As the saying goes, once a cannon is fired, gold is two thousand, if a country does not have a strong economic foundation as a support, then there is no difference between falling into a war without authorization and committing suicide. Ukraine is a prime example of this. Since the outbreak of the Donbass War in 2014, Ukraine's economic situation has deteriorated, coupled with the fact that Poroshenko, a leader who only knows corruption, has shown little hope of turning around, and its per capita GDP has fallen to less than $2,000 at its lowest, replacing Moldova as the poorest country in Europe.
Nearly 40 days have passed since the war between Russia and Ukraine broke out, and about half a month after the war broke out, the Ukrainian prime minister made it clear that the war had brought $500 billion in losses to Ukraine. What is this concept? That's equivalent to Ukraine's gdp for two and a half full years. This statement is obviously very exaggerated, he is just trying to put on a poor face and then ask the European Union and the United States for aid.
However, the Western countries obviously do not want to really revitalize Ukraine, they just want to push Ukraine to the front line of the fight against Russia and shed blood. Therefore, the Western countries have always provided Ukraine with a large amount of weapons and equipment, and as for economic assistance, it has not been mentioned at all.
So, how much damage will this war inflict on Ukraine? According to a statement issued by the Ukrainian government on April 3, its relevant departments believe that Ukraine's GDP in the first quarter of this year plummeted by as much as 16% compared with the same period last year, and the annual GDP will even plummet by 40%. In the context of the epidemic, many positions that can work remotely are the least damaged, unable to work online, and the economic losses are quite serious. According to world bank statistics, Ukraine's GDP was $155.5 billion in 2020 and $195 billion in 2021, and the good momentum of the rally was completely shattered by a war.
The Negative Impact of the Ukraine Economy, which has suffered heavy losses, will not only affect itself, but even affect the entire world, especially Europe. It is important to know that Ukraine has always had a reputation as the granary of Eastern Europe and is the world's leading exporter of corn and wheat. Ukraine exports 12 percent of global wheat exports and 15 percent of maize.
In addition, the sunflower oil exported by Ukraine is one of the pillars of the world's sunflower oil, the proportion of sunflower oil accounts for as much as 50%, and many European countries are currently in a state where there is no edible oil to buy.
The EBRD is more optimistic, arguing that Ukraine's economy will shrink by 1/5 this year, and that the war-torn regions are currently contributing about 60% of Ukraine's gross national product. Affected by the war, 30% of Ukraine's enterprises have stopped production or been completely destroyed, and electricity consumption has plummeted by 40%.
None of this reflects the devastating damage that the war had inflicted on Ukraine's basic functioning industries. Ukraine's basic industry has been uprooted this time, especially the military industry. It should be known that in the past few years, although the frontline soldiers have always been short of weapons and ammunition, they have maintained the position of the top 15 countries in the world's arms exports for many years.
It is also worth mentioning that there is only one major port in the hands of Ukraine that is still under control, Odessa, which is still surrounded by Russian troops. Ukraine is now losing at least $1.5 billion a month due to the stagnation of the actual operation of the main port, and Ukraine is ready to pass through the Romanian port of Constanta. Export your own produce to Europe.
At the same time, Ukraine is seeking to scale up rail traffic with countries such as Poland, Romania and Slovakia in order to achieve the normal export of its grain. In any case, it is an indisputable fact that the Ukrainian economy has been almost devastated.