It will soon be a year since the full-scale war of the Russian Federation against Ukraine continues, and the economy of our state, which has switched to a military footing, is feeling the consequences of regular attacks by the aggressor. At the same time, the authorities are actively developing mechanisms for the future recovery of the country after the victory and recreating the conditions for financial stability.
Now, against the backdrop of risks for the economic and financial spheres due to the war, the issue of investing funds and savings has become much more complicated for Ukrainians. Yes, and regarding the expediency of making investments in particular.
The situation on the investment market now
Compared to February, when companies suspended work, the flow of investments into the country decreased and fear gripped all of us, now the situation has improved significantly.
More than 80% of the cities and villages of the country are free from invaders. People continue to live more or less familiar lives. More than 40% of establishments operate from the pre-war number. Entrepreneurs from the occupied places are starting business again, but in other regions of Ukraine. New stores are opening daily, foreign companies are returning, and investors are even more interested in the post-war reconstruction of our country.
This is an indicator that the money works for the owners even during the war. But why is this important for everyone, not just large investors and business owners?
The economic crisis in the country contributes to hryvnia inflation. Recently, the dollar has skyrocketed, which leads to higher prices for foreign goods, fuel, and so on. So that your savings do not depreciate completely, you do not need to keep money in a bank account. Make them work for you and multiply.
Of course, investing is always a risk. Especially in the enterprises of the country in which there is a full-scale war.
5 areas where to invest during the war
- IT companies
Even under martial law, more than 80% of IT companies retained almost 100% of their contracts and showed growth of 13% in three quarters. Despite all the challenges of the war, the IT industry is one of the fastest growing sectors of the Ukrainian economy.
Innovation and technology is one of the industries that investors are primarily interested in within Advantage Ukraine – an initiative to attract investment to Ukraine, which was introduced in September this year with the support of the President of Ukraine.
According to the results of three quarters of 2022, IT enterprises paid UAH 48 billion in taxes. More than half a billion dollars has been directed to support the Armed Forces of Ukraine and the humanitarian sphere. The export of computer services grew by 23% compared to the previous year. Ukrainian IT companies attracted $350 million in investments.
The payback of commercial real estate is two to three times higher than residential. It is possible to purchase commercial real estate even in the historical center of a Ukrainian city at a discount. So recently in Lviv there was real estate with an area of 1168 m² and at a price 3.5 times lower than before the war.
- Franchises of grocery stores and restaurants
Even with price increases, there will never be a drop in food-related profits. Take a closer look at pastry franchises, small cafes or restaurants.
- Shares, Cryptocurrency
Stocks have long been one of the options for passive income. The current trend is investing in cryptocurrencies and stablecoins, although stablecoins can also fall in price.
An example is the recent crash of Luna i Terra. However, they still remain one of the profitable investment options. The same can be said about cryptocurrency. Therefore, we advise you to take a closer look not only at Bitcoin, but also at Golden Ball, Ethereum, Cult DAO. Recently, they are in the top.
- War bonds
This option is suitable for entrepreneurs with a large fortune, and ordinary citizens of all professions. By purchasing a war bond, you support our Army and receive an interest-bearing payout later.
Briefly about the main rules of investing
- Don’t rush to make a decision.
- Don’t invest money you need soon.
- Have a clear investment horizon.
- Don’t invest in one company
- Don’t panic
All this will help you, even at the beginning of the path called “investing”, to become a successful investor and earn money during the war.