Actual Problems of the State and Development of the Economic System of Ukraine under Martial Law

Abstract

A structural and system analysis of the state and development of the economic system of Ukraine in wartime conditions is carried out and a set of economic measures to counter the negative manifestations of the full-scale invasion of the territory of Ukraine by russia is proposed. The authors systematize the most significant and growing threats in the economic sphere under conditions of uncertainty: demographic crisis, deformed age structure of the population with a high proportion of elderly people; high number of migrants; extremely high dependence on external financial assistance; irregular flow of foreign aid and a decrease in its volume with a simultaneous increase in defense spending; structural imbalances in GDP. The authors note that forecasts for GDP growth will not lead to an increase in the quality of life of Ukrainians and their purchasing power. The authors emphasize that, given the unpredictability of the duration of hostilities, unpredictable financial and material losses, a colossal deficit of the State Budget of Ukraine, a decrease in the stability of the economic system, and further inflow of external financial assistance are the main sources of funding for the military and social spheres. The main directions of reconstruction of the economic system of Ukraine to achieve the highest possible level of economic and financial self-sufficiency of the national economy are proposed; increasing the level of resilience and development of domestic enterprises in the conditions of military conflicts; prioritizing military spending; return of migrants to their homeland; sustainable growth of labor productivity of specialists in all sectors of the economy. This is especially important for the agro-industrial complex – through the development of industrial parks, technology parks, innovation parks, ecological agroparks, clusters, etc. Also, in order to generate additional sustainable income for socially vulnerable segments of the population, it is important to develop social entrepreneurship and the «silver economy» in territorial communities.

Keywords

• economic system
• areas of reconstruction
• migration processes
• reforms