TRANSFORMATION OF HOUSEHOLD INVESTMENT STRATEGIES IN UKRAINE UNDER MARTIAL LAW
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Abstract
Introduction. Martial law, introduced in response to Russia’s full-scale aggression against Ukraine, has had a significant impact on household economic behavior. In the face of increasing risks, changes in the macroeconomic environment, disruption of financial ties, and overall instability, citizens have been forced to reassess their financial priorities, prioritizing capital safety, liquidity, and short-term instruments. Studying the transformation of household investment strategies is highly relevant for understanding new approaches to preserving and growing savings, which in turn affects the country’s overall financial stability. It is important to note that these trends are not uniform across all households. They depend on households’ financial conditions, income levels, place of residence, trust in financial institutions, and expectations for the future. Understanding these new investment trends is essential for developing effective public policies aimed at supporting household financial stability, encouraging domestic investment, and ensuring the country’s post-war economic recovery.
Purpose. The purpose of this article is to identify the main changes in household investment strategies in Ukraine under martial law and to determine the factors driving the transformation of household investment behavior.
Results. The study examines the transformation of household investment behavior in Ukraine under martial law. The main factors driving changes in investment strategies are identified, including a high level of economic uncertainty, rising inflation, the threat of income and asset loss, and restrictions on financial market operations. The analysis reveals a shift in household priorities from long-term investments to maintaining liquidity and minimizing risks. Key trends in household financial behavior are highlighted, and potential directions for state policy aimed at supporting investment activity among the population during a crisis are outlined. Household investment strategies are systematized.
Originality. Investment strategies of Ukrainian households under martial law have been systematized, taking into account current macroeconomic, political, and security factors. The classification of these strategies highlights a significant transformation in the financial behavior of the population, reflecting adaptation to conditions of high instability and risk. Unlike the pre-war period, when a single savings model predominated, the current environment reveals a diversification of investment approaches depending on household income levels, financial literacy, access to information, and psychological risk tolerance. The most widespread remains the defensive strategy, which focuses on capital preservation and liquidity. However, the share of balanced and adaptive strategies is gradually increasing, indicating a growing desire among certain households not only to preserve but also to grow their savings despite the crisis. At the same time, speculative strategies reflect the presence of a segment of investors willing to operate in highly volatile conditions.
Conclusion. The investment behavior of Ukrainian households under martial law is characterized by a predominance of conservative strategies focused on maintaining liquidity. At the same time, there remains a high sensitivity to psychological and macroeconomic factors, expert opinions and assessments, information about international support, and developments on the frontline. Significant differences are observed in the behavior of various social groups and regions. Nevertheless, there are evident attempts at adaptation and the search for new investment opportunities, although their scale remains limited by the high level of risk and uncertainty. Between 2022 and 2024, the investment strategies of Ukrainian households have undergone substantial transformation. Whereas before the war, priority was given to traditional deposit instruments aimed at generating profit, under martial law there has been a shift toward more flexible and potentially higher-yield forms of saving. The growing popularity of foreign currency savings, increased investments in government bonds, and a cautious return to term deposits in the national currency are indicators of the adaptive financial behavior of Ukrainian households in the face of crisis and instability.
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