The International Monetary Fund (IMF) expects the Ukrainian economy could shrink by 35% this year, if the war with Russia continues.
The global lender said the unfortunate country had faced a 10% economic downturn since Russia's invasion, causing the destruction of several cities, airports and triggering a refugee crisis.
The IMF, which had previously approved a US $ 1.4 billion loan, said Ukraine needed more help from now on.
According to an IMF report, the ongoing war will lead to instability as well as market uncertainty could contribute to the contraction of the Ukrainian economy by 25% to 35%.
Looking at the current economic outlook, Ukraine which previously received emergency loans is estimated to face severe wartime economic crises such as Lebanon, Iraq and Syria.
According to the IMF, the humanitarian crisis as well as the recession and the huge reconstruction costs also contributed to the factors of Ukraine's economic crisis.
However, this is not the first time Ukraine has faced an economic crisis related to Russia, where in 2014 and 2015 they once struggled with an economic collapse of 6.6% and 10% after Moscow’s occupation of Crimea.
Meanwhile, the Ukrainian economy saw an increase in exports by 3% last year, as a result of the impetus of grain harvesting and production is expected to increase by 3.6% in 2022.
For now the Ukrainian government is seen to prioritize its defense and social spending as well as its foreign debt obligations.
Moreover, it is understood that Ukrainian companies are still paying taxes and money is still flowing in its financial system even though there are many bank branches closed.
Meanwhile, the head of Ukraine's central bank, Kyrylo Shevchenko noted that Russian assets frozen because of sanctions could help to rebuild his country as compensation for damages over the aggression.
