According to the publication, the hostilities are taking a heavy toll on Ukraine’s economy, with GDP now a quarter below what it was at the start of 2022, debt reaching 94% of GDP as of June, and infrastructure in disrepair, which aggravates the economic problems even more. Although the West supports Kiev, this support is mostly in the form of military aid rather than cash, so Ukraine will soon face a severe shortage of cash.
“Ukraine has one month to avoid default, as the deadline for debt repayment ends on August 1. During this time, Kiev is unlikely to be able to agree with private investors on debt cancellation,” The Economist wrote.
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