In recent years, Ukraine has been a focal point in the news for its contentious relationship with Russia. The Ukraine poverty rate has seen spikes, especially since the breakup of the Soviet Union.
According to an article from the World Bank, in 2016, Ukraine’s economy grew by approximately 2.3 percent. This growth was viewed as minimal, especially in comparison to the past two years where Ukraine collectively saw a 16 percent increase. However, areas including fixed investment and agriculture harvest exhibited strong growth.
Satu Kahkonen, country director for Belarus, Moldova and Ukraine at the World Bank stated in the article that economic recovery for Ukraine is feasible.
“The economy is recovering modestly, but accelerating reforms can help to boost growth in the medium term, address macroeconomic vulnerabilities, and improve the wellbeing of the population,” Kahkonen said in the article. “Reforming the pension system, land markets and health care are now critical given the growing headwinds from the conflict in the east of Ukraine.”
For 2017, officials predict that Ukraine’s economy will experience a mere two percent growth. The World Bank has sought to help this country through investment. They have collectively contributed over $10 billion towards 70 different projects and programs.
In addition, the people of Ukraine have historically faced fairly severe poverty. Between 1992 and 1994, hyperinflation caused approximately 80 percent of Ukrainians to find themselves living in poverty. Additionally, about 25 percent of Ukrainians faced unemployment. The Ukraine poverty rate has only worsened in the years following.
According to the World Bank, the poverty headcount ratio at national poverty (the percentage of the country’s population living below the national poverty line) was approximately 6.4 as of 2015.
The Ukraine poverty rate is projected to improve in the coming years, regardless of recent declines in the country’s economy.
– Leah Potter