Ukraine:
Economic Contraction: Ukraine’s economy had already been struggling before the conflict, but the Russia Ukraine war exacerbated its economic challenges. The country experienced a significant economic contraction, with industries in the conflict-affected regions severely disrupted. About 3.1 percent economic growth had slowed in 2022 and estimated that in 2023 it will be 2.2 percent.
Humanitarian Costs: The war led to a significant humanitarian crisis, with displacement of people and increased social spending to support those affected.
Debt and Aid: Ukraine received financial assistance and loans from international organizations and Western countries to stabilize its economy and address fiscal deficits.
Agricultural Loss: In Ukraine a massive loss of agricultural land and productive material due to the Russia Ukraine war. This war was started in February 2022. And for reconstruction Ukraine required more than its previous budget amount expectedly.
Russia:
Sanctions: Russia faced economic sanctions from Western countries in response to its actions in Ukraine. These sanctions targeted key sectors of the Russian economy, including finance, energy, and defense, which had negative economic consequences.
Energy Exports: Russia is a major energy exporter, and energy prices and export revenues are critical to its economy. Sanctions and geopolitical tensions affected its energy trade and revenues.
Domestic Impact: The conflict in Ukraine also had domestic economic implications, including increased military spending
