Measuring Ukraine’s non-public consumption throughout the struggle


There was a major hole in producing national-level information that seize the extent of financial exercise in Ukraine within the first half of 2022. As Russia’s invasion continues to ravage many components of the nation, the circulation of official statistical information has been erratic. This lack of knowledge and the continued struggle enhance the problem of assessing Ukraine’s post-war restoration wants (Becker et al. 2022).

Respondents to the State Statistical Service of Ukraine surveys have been allowed to postpone their reporting throughout the interval of martial regulation. For instance, month-to-month sectoral output information and information on enterprise payrolls haven’t been reported since February 2022. These units of indicators are required in setting up nationwide output estimates below normal aggregation fashions employed by financial forecasters. 

Enterprise surveys have been restricted of their statistical worth resulting from geographic and sectoral gaps. The struggle has created further issues. For instance, the month-to-month enterprise sentiment survey by the Nationwide Financial institution of Ukraine was interrupted for the crucial months of March to Might (NBU 2022) and, in consequence, it now factors to a common development somewhat than particular and comparable ranges of financial exercise. 

Use of different information that might present good proxies for financial exercise in regular occasions has grow to be inappropriate in struggle occasions. Particularly, information on value-added tax (VAT) couldn’t be translated into gross sales estimates as companies had been allowed to change right into a no-VAT regime in March 2022. Electrical energy consumption, which is one other proxy for financial exercise, has additionally grow to be unavailable as energy load information has been made secret firstly of the struggle. 

Researchers have explored new approaches to proxying financial exercise in Ukraine, for instance by means of using social media information (Constantinescu et al. 2022). Nevertheless, social media utilization may change dramatically amid seismic occasions just like the Russian invasion, which makes these information a loud proxy. Additionally, social media is usually used for non-business causes, blurring the hyperlink between its utilization and financial exercise.

We suggest one other technique for gauging non-public consumption, utilizing micro-level financial institution card information. The good thing about this technique is that it has uninterrupted circulation of knowledge, and information come from nearly all Ukrainian areas, together with areas the place normal information assortment methods are suspended. 

We begin by describing the extent of disruption throughout Ukraine, to present us the minimal benchmark for fall in consumption. We then report extra exact estimates, whereas acknowledging some doubtless biases within the estimation.

Territories affected by struggle

The only back-of-the-envelope estimate within the absence of dependable statistical or enterprise survey information is mapping out the territories most affected by struggle actions and over-imposing these affected areas and the severity of injury with their position in nationwide output. This estimate permits us to quantify the direct war-related burdens to the economic system. The strategy has limitations as there are oblique hits to the economic system just like the naval blockade of Ukrainian exports (Blinov and Djankov 2022a). It therefore gives a decrease estimate of the destructive financial penalties of the struggle.

We make use of this territorial technique by investigating the eleven Ukrainian areas which have witnessed important presence of Russian army energy (desk 1). Utilizing official authorities information on struggle actions, we estimate the extent of occupation and harm by assigning weights. The darker the color, the stronger the destructive influence on financial exercise. As an example, areas coded black noticed a lot of their territory occupied by Russian army forces within the respective month. White color doesn’t imply ‘no struggle’, as all Ukrainian areas endure from aerial assaults and may even see clashes in some areas (like Dnipro or Odesa, not current on this desk). Moderately, it implies that there are not any important troop actions on the bottom.

This calculation leads us to conclude {that a} third of the Ukrainian economic system ceased working in March 2022, after which counter-advances of the Ukrainian military within the north halved this share to 15-18% in April after which additional decreased it to a median of 13% in Might and June. 

Desk 1 Warfare-battered areas by months of 2022 and struggle severity (% of GDP)

Supply: State Statistics Service of Ukraine, authors’ estimates.

Nevertheless, consumption has decreased even in geographical areas indirectly invaded by Russian troops. Accelerating inflation, lack of jobs, change charge actions all act to depress financial exercise. Because of this the bottom-line figures above symbolize sensible higher limits for personal consumption estimates: precise decline figures are extra dramatic. 

Financial institution card transactions

We make use of financial institution card exercise information as a proxy for personal consumption. Particularly, we use month-to-month level of sale (POS) transaction information from Alfa-Financial institution, one in every of Ukraine’s greatest non-public industrial banks. The information present the precise location the place a purchase order is made. As of Might, these information had been according to financial institution card transactions reported by Privatbank, Ukraine’s greatest financial institution (Privatbank 2022). The latter gives some consolation as to the robustness of our estimates for the 2 banks collectively account for over half of the POS market.

The deleterious results of the struggle are simply discernible within the information. Financial institution card funds fell by half in March, the trough of the war-induced demand decline in Ukraine. A restoration in transactions quantity was seen in April and Might, and by June transactions volumes stabilised at round 75% of their pre-war month-to-month stage. When adjusted for seasonality and inflation development over the interval, this estimate corresponds to a 40% lower (Determine 1).

We additionally plot information for the pandemic-affected first half of 2020 to check the relative depth of the struggle disaster in consumption with the earlier hunch, additionally attributable to exogenous components. In 2020, retail gross sales, adjusted for seasonality and inflation, surpassed their 90% pre-shock stage by June, reflecting swift restoration from the lockdown. 

Determine 1 Retail gross sales tendencies of 2020 and 2022 (January = 100)

Supply: State Statistics Service of Ukraine, authors’ estimates based mostly on micro-level financial institution transactions information. 

The sample is completely different throughout the struggle. When seasonal and worth changes are made to the development estimates, it seems that the second quarter of 2022 plunge in shopper demand was 3.3 occasions deeper than throughout the preliminary COVID-19 lockdown in 2020. Family consumption dropped 9.3% year-on-year within the second quarter of 2020. Nevertheless, making use of POS-derived coefficients, non-public consumption declined by round 30% within the second quarter of 2022, plateauing by June 2022 at round 70–74% of consumption relative to the earlier 12 months’s ranges.

The development has been uneven for numerous bundles of consumption. Whereas complete nominal POS gross sales in June recovered to stay a little bit increased than their 75% pre-war stage (Determine 1), a few of their contributors already surpassed their pre-war factors, whereas others are nonetheless at lower than half of their pre-war values (Determine 2). Meals purchases at supermarkets have remained somewhat secure. On the identical time, gross sales of clothes and sneakers demonstrated quick restoration, whereas gross sales of leisure providers (cinemas, bars, and so on.) and eating have remained depressed.

Determine 2 Alfa-Financial institution POS gross sales by key sectors in 2022 (January = 100, non-adjusted)

Supply: Authors’ estimates based mostly on micro-level financial institution transactions information. 
Notes: no seasonal and worth changes.

The usage of financial institution card transactions information as a proxy for consumption has limitations. As an example, Ukrainian households are inclined to withdraw more money throughout crises after which make funds with that money. This consideration makes POS-based consumption estimates conservative, notably for March and April 2022, when a lot money had been withdrawn after which supposedly returned to banks through numerous distributors. It’s also price noting that POS as a fee technique has completely different penetration ranges in massive cities and small cities, with consumption within the latter being extra cash-driven. These two biases are inclined to work within the course of constructing the estimate extra conservative and thus serving because the higher certain of the non-public consumption fall.

In abstract, these aggregated micro information counsel that non-public consumption in Ukraine fell to half its pre-war stage in March 2022. Within the second quarter, it recovered to 70%, whereas month-to-month breakdown signifies that non-public consumption then plateaued by June 2022 at 70-74% of its previous-year stage.

These micro-data estimates of personal consumption are considerably affected by the destructive results of the struggle as a result of massive refugee wave that adopted the beginning of hostilities (Blinov and Djankov 2022b). There’s a statistical problem for estimating consumption of these over 5 million Ukrainians who fled the nation and haven’t returned but. They’re nonetheless Ukrainian customers, although their consumption counts as imports for the needs of calculating nationwide accounts. The return house of those Ukrainian residents is more likely to enhance consumption and transfer it away from the present plateau.


The micro-data method to estimating non-public consumption throughout the struggle in Ukraine reveals a dramatic collapse after which some restoration, to 70–74% of its previous-year stage. The restoration has some similarities with the trail within the aftermath of the COVID-19 pandemic, albeit from a a lot deeper trough and at a a lot slower tempo, as a result of apparent distinction within the nature of the 2 crises. Particularly, the distinction between the 2 occasions is the massive refugee wave, which has not but subsided and creates important uncertainty concerning the future restoration development. These first estimates counsel that Ukraine may certainly be poised for a gradual restoration path (Blinov and Djankov 2022c).

The usage of micro information could also be warranted in calculating different components of nationwide accounts too, for instance web exports and authorities funding. For the previous, financial institution card information from Ukrainian refugee accounts can enhance the import estimates, whereas information from public procurement contracts can make clear authorities funding (Bosio et al. 2022). These estimates are solely imperfect substitutes for normal authorities statistics, which hopefully return to regular manufacturing within the close to future.


Alfa-Financial institution (2022), “Personal consumption restoration slowed down in June”, 5 July (in Ukrainian),.

Becker, T, B Eichengreen, Y Gorodnichenko, S Guriev, S Johnson, T Mylovanov, Okay Rogoff and B Weder di Mauro (2022), “A Blueprint for the reconstruction of Ukraine”,, 7 April. 

Blinov, O and S Djankov (2022a), “Restarting Ukraine’s Agricultural Exports,”, 10 June.

Blinov, O and S Djankov (2022b), “Ukraine’s Deepening Inhabitants Problem,”, 28 June.

Blinov, O and S Djankov (2022c), “Ukraine’s Restoration Problem,”, 31 Might.

Bosio, E, S Djankov, E Glaeser, and A Shleifer (2022), “Public Procurement in Regulation and Observe.” American Financial Evaluation 112 (4): 1091-1117.

Constantinescu M, Okay Kappner, N Szumilo (2022), “Estimating the short-term influence of struggle on financial exercise in Ukraine,”, 21 June.

NBU (2022), Month-to-month Enterprise Outlook Survey, Nationwide Financial institution of Ukraine, June.

Privatbank (2022), “Shopper market restoration: In Might, Ukrainians bought extra meals and home equipment, visited cafes and eating places and paid with playing cards”, 16 June (in Ukrainian).



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