Economic consequences of the invasion After losing a relatively modest 4% of GDP to the Covid-19 pandemic in 2020, the Ukrainian economy grew at a healthy 3.2% in 2021 and was expected to grow at the same pace in 2022. The sudden Russian invasion upset this forecast. The initial stage of the invasion hit the capital Kiev and ten regions, which jointly account for 55% of pre-war GDP. Ukraine’s GDP shrank by 15.1% in the first quarter of 2022 – the year-on-year decline recorded in March 2022 was a massive 45%. In the second quarter, GDP fell by a staggering...