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Ukraine must double its GDP to operate at full swing, - Head of the Center for Economic Recovery
01.11.24

Because of war-incurred losses, Ukraine must accelerate its GDP growth, and human capital is required to attain this objective.

This was the major idea of Kyrylo Kryvolap, Head of the Center for Economic Recovery, at the 10th Youth Kyiv Security Forum, organized by the Arseniy Yatsenyuk “Open Ukraine” Foundation.

“Before the full scale-invasion, the State Budget of Ukraine, including its Pension Fund and public expenses, amounted to around $80 billion. Currently, for the country to function in a proper way, the budget requires additional funds to cover social expenses, army-related expenses and reconstruction needs”, - he said.

“The minimum to fund the war budget is at least $100 billion. To this purpose, the GDP must be around $300 billion, well above the pre-war $200 billion. This basically means that our GDP should be doubled”, - Mr Kryvolap emphasized.

According to him, to reach this level it is necessary, first and foremost, bring back the currently lost human capital to Ukraine.

“Many people migrated because of war. To double our GDP, we need at least 3,5 - 4,5 million workers, and this is the number of people that may potentially come back from abroad. We must revisit our migration policies, resolve issues in labor migration and multiple passports. This means that we need to make Ukraine attractive for human labor force”, - the expert argues.

“Another approach is focus on stepping up production and investment, rather than looking for these currently unavailable 3 million people. Here, the rule of law and security issues get the paramount attention”, - he concluded.

Youth Kyiv Security Forum is a major platform to engage young leaders into discussions of national security issues and international relations agenda.
 

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