War pushes more than 7 mln Ukrainians below poverty line – World Bank

The poverty rate in Ukraine increased from 5.5 percent to 24.2 percent in 2022, pushing 7.1 million people below the poverty line, the Guardian reports, citing a World Bank report.

The report says that the worst impact on the economy is felt in rural villages.

"With unemployment unofficially at 36 percent and inflation hitting 26.6 percent at the end of 2022, the institution’s regional country director for eastern Europe, Arup Banerji, had warned that poverty could soar," the Guardian writes.

It adds that the prices of food, fuel, and services have risen sharply in Ukraine, with the costs sometimes increasing by 50 percent.

The economist Olena Bilan says that without a huge package of financial support from the international community the situation would be worse.

"We’ve seen GDP decline by 30 percent in large part because Ukraine exports 80% of its goods through ports it no longer has access to.

"We’ve had inflation of 26 percent – again which could have been worse – but people’s salaries have also been flat and the currency has devalued against the dollar by 20 percent."

Ms Bilan added that the biggest challenge "is going to be how to create new jobs."

The United Nations Development Programme said back in March 2022 that Russia's protracted war against Ukraine could lead to extreme poverty for 90 percent of the population.