We are pleased to learn that last Thursday the Ukrainian Ministry of Economy and SECO signed a memorandum of understanding to select urgent reconstruction projects to be entrusted to Swiss private companies already operating in Ukraine. Additional companies that are not yet active in Ukraine will join them, with projects supported by 500 million francs allocated last June by the Federal Council.
This first step is part of a broader plan that foresees support of 5 billion francs until 2036, divided into two tranches: 1.5 billion for the 2025-2028 three-year period and the remaining 3.5 billion for the 2029-2036 period.
For now, these are intentions that require ratification, but in the long term, it is notable how Switzerland’s contribution, relative to the country’s GDP, is significant. The World Bank, together with the European Commission and the United Nations, estimates that damages will amount to 486 billion dollars over 10 years. Considering that, according to the World Bank, Switzerland contributes 0.84% to the global GDP (measured in dollars, see chart) and that the support period extends beyond 10 years, we would like to point out that, in perspective, Switzerland is contributing to Ukraine’s reconstruction by a percentage slightly above 1% of the estimated needs, which exceeds its share of the global economy.
Switzerland’s Gross Domestic Product (GDP) was 884.94 billion US dollars in 2023, according to official World Bank data. Switzerland’s GDP value represents 0.84 percent of the global economy. Source: World Bank.
Disclaimer: This article reflects the personal opinion of the Custodia Wealth Management collaborators who authored it. It does not constitute investment advice, personalized consulting, nor should it be considered as an invitation to conduct transactions on financial instruments.
