ECONOMIC CHALLENGES OF SUSTAINABLE DEVELOPMENT OF UKRAINE IN THE CONDITIONS OF WAR AND POST-WAR RECOVERY

Abstract

The article examines the economic challenges of sustainable development in Ukraine during wartime and post-war recovery. The study defines the economic dimension of sustainability as the core component ensuring macro-financial stability, social cohesion, and environmental security. Based on statistical data from the National Bank of Ukraine, the World Bank, the Kyiv School of Economics, and the Organisation for Economic Co-operation and Development (OECD), the paper analyzes key macroeconomic indicators for 2021–2024. It identifies a sharp GDP decline in 2022 (–28.8%), high inflation, a significant increase in public debt, and a critical budget deficit caused by infrastructure destruction, export contraction, and increased defense spending. Despite the severe crisis, Ukraine’s economy showed partial recovery in 2023 and stabilization in 2024, with growth of around 2.9%. The paper highlights the findings of the Rapid Damage and Needs Assessment (RDNA), which estimate total reconstruction needs at over USD 486 billion, with the largest funding requirements in energy, housing, and social infrastructure. The study emphasizes the crucial role of international financial assistance, including programs by the IMF, the World Bank, the European Union, the EBRD, and the EIB, which collectively provide more than USD 270 billion in grants, loans, and technical support. The article outlines the main principles of sustainable post-war recovery: innovation, energy efficiency, social equity, international partnership, and environmental safety. The concept of «build back better» is proposed as a foundation for forming a new architecture of economic resilience and sustainable reconstruction. The results show that sustainable development under wartime conditions requires a shift from short-term survival strategies toward long-term recovery through innovation, resource efficiency, and institutional strengthening. The synergy of domestic reforms and international support will enable Ukraine to build a competitive, socially responsible, and environmentally balanced economy.