Abstract
Russia’s invasion of Ukraine continues to have a devastating economic and social impact. Active combat is concentrated in eastern and southern Ukraine, while continued attacks on critical energy infrastructure had a severe social toll over the winter. Civilian casualties continue to rise, and over a third of the population has been displaced. The war has had a profound impact on the economy: activity contracted by 30 percent in 2022, a large swathe of the country’s capital stock has been destroyed, and poverty is on the rise. The authorities have nevertheless managed to maintain overall macroeconomic and financial stability, thanks to skillful policymaking and substantial external support.
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