As Russia continues to wage war in Ukraine, different countries are coming together with significant donations in a bid to restore normalcy in the east European country. Based on the aid's share in relation to the gross domestic product (GDP), Baltic region countries are leading the way.
According to data gathered by Finbold, Estonia has pledged the highest aid by share of its GDP at 0.81% towards Ukraine between January 4, 2022, and May 10, 2022. Latvia ranks second with a GDP share of 0.72%, while Poland has committed the third-highest aid by the percentage of GDP at 0.46%.
Based on the size of the economy, the U.S. aid commitment to Ukraine in managing the war ranks fourth at 0.2% of the GDP, while Lithuania is fifth at 0.2%.
Other countries leading in contributions include United Kingdom (0.18%), Canada (0.13%), Slovakia (0.12%), Norway (0.09%), Hungary (0.09%), France (0.08%), Czech Republic (0.08%), and Luxembourg (0.07%).
Germany trails in the 14th spot with a share of 0.06%, at least over 13 times compared to Estonia.
- Aid commitment aided by need to restore normalcy
The research explores some of the drivers for the massive donations towards Ukraine. According to the research report:
“The significant inflow of aid into Ukraine is part of the donors' recognition that the fallout of the conflict might have consequences on the region and possibly in other parts of the world without support. However, of interest will be the sustainability of the aid in the long-term, especially in the absence of domestic legislation and considering that the support is partly eating into the donor's GDP.”
Additionally, the aid commitment for Ukraine will likely be channeled towards alleviating the economic impact of the war. Since Russia's invasion of Ukraine, global economic disruptions have affected key sectors like security, energy supply, food production, and exports.
Read the full story with statistics here: https://finbold.com/estonia-commits-the-highest-aid-to-ukraine-by-gdp-share-dwarfing-germany-by-over-10x/