Ukraine

Russia’s full-scale invasion of Ukraine has significantly impacted the country’s economic landscape. However, as most areas of this country of approximately 33 million people—the second-largest in Europe—are not on the frontlines, Ukraine has managed to maintain an impressive degree of entrepreneurial dynamism. Such dynamism is rooted in a large consumer market, abundant natural resources, and a highly educated, cost-effective workforce. Furthermore, the war has not halted but accelerated the push for corporate governance and economic reforms, especially since Ukraine was granted candidate status for EU membership through an accelerated procedure in 2022. Additionally, Ukraine’s post-conflict reconstruction is expected to draw investment estimated in hundreds of billions of dollars from governmental bodies, international financial institutions and the private sector.

Among the top priorities on the agenda, Ukraine will need to confront persistent shortcomings in key areas such as transparency and bureaucratic efficiency. It will also be necessary to develop solutions for the erosion of production capacity and tackle the economy’s insufficient diversification. The demographic decline, worsened by the exodus of large swaths of the population, will pose an additional challenge.