Rebuilding Ukraine will require money, but also tough reforms

Ukraine sufferedgdp a brutal winter. Russia lobbed missiles at civilian and energy infrastructure, attempting to terrorise the population and cut off the green shoots of economic growth. It had some success. A sentiment indicator surveying Ukrainian firms hit a low in January. But as the country’s soldiers began their counter-offensive, so the economy pushed back. In April and May the sentiment indicator signalled economic expansion. Vacancies continue to rise, as businesses seek workers. Forecasts are increasingly rosy, too. Dragon Capital, an investment firm in Kyiv, expects growth of 4.5% this year.There is nevertheless a long way to go: Ukraine’s economy shrank by more than a third at the start of the war. Agriculture has been hit hard by the bursting of the Kakhovka dam; many iron and steel facilities are destroyed or in Russian-occupied territory; foreign investors are understandably cautious; many workers are fighting or have fled the country. Thus policymakers, financiers and business types gathered in London on June 21st and 22nd for an annual conference. Their task was to work out how to support Ukraine’s recovery.