Ukraine needs $524 billion to rebuild over the next decade

Ukraine will need approximately $524 billion to rebuild in the next decade – Visual Capitalist in collaboration with Inigo visualized reconstruction costs by sector, highlighting those that need the most money.

The visualization is based on data from the World Bank’s fourth Rapid Damage and Needs Assessment (RDNA4).

Visual Capitalist

As noted, the full-scale invasion of Ukraine by the Russian Federation has hit the housing sector the hardest. By the end of 2024, 13% of homes in the country were damaged or destroyed. Over the next decade, it is estimated that $83.7 billion will be needed to rebuild the lost housing.

The second-largest sector in terms of investment required for its recovery is transportation ($77.5 billion over the next decade). Approximately $44.3 billion will be needed for road repairs, and $20.3 billion for railroads.

Before the Russian invasion, Ukraine’s energy sector accounted for 14% of GDP and employed 3% of the population. Now, its recovery requires $67.8 billion over the next 10 years.

The total need to rebuild the trade and industry sector over the next decade is $64.4 billion.

According to the RDNA4, reviving the trade and industry sector is a priority because it affects the jobs and livelihoods of millions of people. The sector also makes a significant contribution to meeting critical needs during reconstruction.

It is noted that Ukraine’s economic recovery depends on harnessing the dynamism and competitiveness of the private sector, as well as its multiplier effect, to support export-led growth and promote job creation, innovation, and overall sustainable development. The surveyed companies identified a number of priority areas requiring government support. These include improving business regulation, facilitating business connections and access to value chains in line with international market requirements, addressing the shortage of skilled labor, tax benefits and incentives, etc.

The post-war recovery will support steel consumption in Ukraine. Before the war, the country exported about 80% of its semi-finished and finished steel products. However, as part of the post-war reconstruction of destroyed real estate and infrastructure, a significant portion of production can be directed to domestic consumption. However, due to the loss of steelmaking capacity, the need for imports will still be significant, especially in terms of flat and structural steel.