Since the start of Russia’s full-scale invasion, total losses of Ukraine’s economy, including both current and projected losses in revenue and value added, are estimated at $1.7 trillion and $0.6 trillion, respectively, according to a new assessment by KSE Institute. Losses in value added alone exceed Ukraine’s pre-war GDP in 2021 by more than three times.

The previous estimate, published in July 2024, stood at $1.164 trillion in lost revenue and $385.7 billion in lost value added. The increase reflects updated methodology, newly available company-level and sectoral data, and an extended assessment period, which now covers losses through the end of 2026.

The largest losses in terms of revenue are concentrated in Ukraine’s productive sectors. Trade accounts for $696.3 billion, industry together with construction and services for $645.6 billion, and agriculture for $81.9 billion. Key infrastructure sectors have also sustained substantial losses, including energy at $75.3 billion and transport at $60.2 billion.

In addition to lost revenue, the war has generated significant additional economic costs. The largest are in the housing sector, estimated at $26.8 billion, and demining at $24.6 billion. In housing, the main component is higher spending by households on rent. Government expenditures on social support have also increased significantly, reaching $7.5 billion. Across all sectors, $13 billion is attributed to dismantling destroyed assets and debris removal.

Losses also extend across other parts of the economy, including healthcare ($15.5 billion), education ($17.7 billion), digital infrastructure and the IT sector ($23.7 billion), culture, sports and tourism ($10.2 billion), the financial sector ($3.3 billion), and utilities ($10.5 billion).

The assessment was conducted by the analytical team of KSE Institute in cooperation with the Ministry for Development of Communities and Territories of Ukraine, in collaboration with other relevant government bodies and the National Bank of Ukraine, and in line with the World Bank methodology.