Ukraine is entering a new economic stage, which experts call the “era of total poverty.” However, this poverty is different from what it was a century ago. A modern Ukrainian may have their own home, car, and decent wardrobe, but their expenses are becoming increasingly limited, with the main income going towards food and basic needs.
What does the new Ukrainian poverty look like?
According to Olga Nasonova, an expert in the restaurant business and sales psychology, signs of poverty in Ukraine have been visible for several months. People still go to restaurants, but they choose the cheapest dishes and order less. In supermarkets, purchases are mostly made based on promotions and discounts. Car owners are increasingly saving on fuel, washing their cars less frequently, and postponing repairs indefinitely.
The new poverty has also affected small businesses. Many entrepreneurs are forced to operate on the verge of profitability or even at a loss. This has widened the gap between the rich and the poor. A new layer of wealthy citizens has emerged in Ukraine, who often are not entrepreneurs but actively spend money on real estate, expensive cars, and luxurious accessories. This is confirmed by statistics: in 2024, sales of new cars increased by 13%.
Small signs predicting a worsening situation
The signs of crisis became evident six months ago. Restaurant visits are decreasing, and promotional offers in supermarkets are causing a stir. Buyers have become more price-sensitive, avoiding products without discounts. The cheapest fast-food options such as pizza, shawarma, and street food are gaining popularity. Many people opt for budget products, even if they are of questionable quality.
Of course, the middle class still exists, but it is teetering on the edge. Only in a few cities is there a stable segment of people who can maintain their usual lifestyle. However, many of them are already adjusting their financial habits and cutting expenses.
Chain reaction of poverty
Modern poverty has a complex effect: if someone does not receive their usual salary or grant, they spend less on clothing, coffee, gifts. This, in turn, affects businesses that provide these services, forcing them to reduce staff or even close down. As a result, financial difficulties affect more and more people and industries, creating a “domino effect”.
What to expect in the future?
Olga Nasonova does not make definitive conclusions, but emphasizes: Ukrainians are facing a period of unpleasant economic surprises. The financial situation of many families will continue to deteriorate, and the gap between the rich and the poor will only widen. In such conditions, it is especially important to adapt financial strategies and prepare for possible challenges.
Ukraine is going through a challenging stage of economic transformations, and the future of the country depends on how society adapts to the new reality.
