Today’s realities: 41% of Ukrainians have enough only for basic needs, and 0.5% can afford almost everything

The financial situation of most Ukrainians remains extremely tense. The full-scale war, which has been going on for over a year, not only changed the course of events in the country, but also significantly affected the material well-being of the population. Many Ukrainians lost their homes, jobs, stable income, and even the basic ability to provide themselves and their children with the most basic necessities. Uncertainty and the economic crisis, which is constantly worsening due to military actions, have significantly burdened the financial situation of every Ukrainian family.

Against the background of these events, the Razumkov Center spent a large-scale sociological study to assess the material situation of Ukrainians. It revealed impressive facts about how people themselves perceive their financial capabilities and economic prospects. According to the results of the survey, almost 41% of respondents claim that they have the funds to cover basic needs, however, when it comes to larger purchases, such as household appliances (TV, refrigerator), the situation becomes much more complicated. This shows that a considerable part of Ukrainians found themselves in a zone of financial instability: they have money only for the most necessary, and even a small unplanned expenditure causes anxiety.

To the question “What is the overall financial situation of your family?” the researchers received the following answers:

• 40.7% of Ukrainians noted that they have enough for life in general, but not enough to purchase durable goods (for example, appliances)
• 35.8% noted that they have enough for food and to buy the necessary inexpensive things.
• 12.2% of Ukrainians admitted that there is not enough money even for the necessary products.
• 9.3% live comfortably, but still do not have enough for an apartment and a car
• 0.5% can afford to buy almost everything.
• 1.5% of Ukrainians did not answer.

Causes of financial difficulties of Ukrainians

Among the reasons for financial difficulties that Ukrainians mentioned were the following:

War and loss of economic infrastructure
One of the most serious factors is the destruction of businesses, infrastructure and jobs due to military action. Many factories and businesses in the war zones were closed or destroyed, leading to unemployment and loss of income for a large part of the population. In addition, the location of production facilities near the conflict zone means a risk for investments and restrains their development.

Forced resettlement
Mass resettlement of people from regions affected by hostilities has become an important factor in increasing costs for many Ukrainians. People who were forced to leave their homes lose everything: jobs, property, savings. They need housing expenses, adaptation in a new place and solving basic needs, which becomes a real challenge in the current economic situation.

Rising prices and inflation
The country is witnessing a rapid increase in prices for goods, food, medical services and utilities. Inflation caused by war and disruption of supply chains means that basic needs are becoming less and less affordable. During the last year, Ukrainians have been forced to significantly limit their spending on food, clothing, entertainment and other needs.

Psychological pressure and lack of confidence in the future
War not only affects the financial situation, but also leads to constant stress and a sense of uncertainty. People are afraid of losing their jobs, facing price increases, and therefore start saving, saving for a “dark day”. This psychological burden contributes to the growth of social tension and a decrease in the level of consumption, which, in turn, slows down economic growth.