War is primarily a competition of material resources, reports Politeka.net.
This was stated by financial analyst and economist Alexey Kushch. He added that a developed service sector and financial flows are crucial for a peaceful economy, but in wartime, where the production of shells or drones is essential, services alone cannot ensure victory. A lack of sufficient material production during war can pose a significant obstacle to the economy.
While the USA focuses on rebuilding its material base through what is known as Trumponomics, China, with its substantial manufacturing capacity, maintains its leadership in the production of critically important material resources. For instance, China produces as much weaponry as the USA, and in the case of ammunition, even more than Russia. At the same time, the virtualization of the economy observed in Western countries contributes significantly to GDP through services, but does not enhance material capabilities, reports Politeka.
Ukraine is facing serious economic challenges due to the war and other global changes. A comparison of the material and virtual components of GDP in Ukraine indicates that a significant portion of the economy is already in the service sector. As a result, the structure of the Ukrainian economy tends toward an increase in "virtual" GDP, which, in turn, worsens access to real material assets.
The expert emphasizes that during and after the war, it is crucial for Ukraine to focus on developing production, restoring material resources, and investing in industry, as the loss of this part of GDP requires significant efforts for recovery.
Source: dsnews.
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