Economic Consequences of the War for Ukraine in the Conditions of Globalization

Abstract

The purpose of the article is to study the economic consequences of the war for Ukraine in the context of globalization.

The armed aggression of the Russian Federation highlights threats and challenges to the economic sovereignty of Ukraine. The war in Ukraine led to an economic and migration crisis, a sharp drop in production volumes, investments,

added value, domestic and foreign trade, consumption and the quality of life of the population, a reduction in real incomes, employment and inflation.

Methods. The theoretical basis of the research is scientific empirical methodology - it is a method of collecting and comparing information, as well as complex methods of analysis, synthesis and generalization. The theoretical basis of the article is research conducted by domestic scientists.

The results. Ukraine is part of the global international community, which increases the country's investment potential for both organizations and individuals. The speed of these processes should be increased by the national economic policy, which contributes to the improvement of business efficiency and the protection of property rights. It was determined that due to inconsistencies in calculation methods, there are large discrepancies between existing estimates of projected losses from military aggression in Ukraine. It has been studied that the war in Ukraine forced European countries to increase defense spending, similar to the threat from China. Defense equipment manufacturers are profiting from this development, which has been reflected in a sharp increase in the value of their shares. The longer the conflict lasts, the more severe the economic issues will become and the negative impact on the socio-economic sphere will increase.

Conclusions. The ongoing conflict in the country has a significant impact on all economic processes, as the country is attempting to rebuild their economy, which necessitates unplanned spending from the past years, as well as new principles that require the provision of resources, environmental and medical assistance. The continuation of the conflict could deal a serious blow to global economic growth and lead to higher prices. The extent of the economic impact of the conflict is highly uncertain and partly depends on the length of the war and the response of governments, but there is no doubt that the war will have a significant impact on global economic growth in the short term, with inflationary pressures significantly worsening.