Ukraine’s economy contracted 29.1 percent in 2022
Ukraine’s economy contracted 29.1 percent in 2022 after the war with Russia, which has been going on since February 24, 2022, destroyed infrastructure and disrupted economic activities.
The Federal Statistical Office of Ukraine has published the final growth data of Ukraine’s gross domestic product (GDP) for 2022.
Consequently, Ukraine’s GDP fell by 29.1 last year. While the Statistical Office did not specify a “reason” why the country’s economy contracted by almost a third, the Ukrainian government cited the fact that the war with Russia, which has been going on since February 2022, destroyed the infrastructure and disrupted economic activities. as the cause of the fall.
BELOW ESTIMATES
According to the Ukrainian government, due to the war in question, the country suffered the greatest loss and damage in its history, while the 29.1 percent GDP contraction last year fell short of the forecast that the country’s economy will It would contract between 40 and 50 percent. , which experts predicted in February 2022, when the war began.
According to World Bank data, Ukraine’s GDP in 2021 reached approximately $200 billion, an increase of approximately 3.4 percent compared to the previous year.
On the other hand, in the report “Rapid Needs and Damage Assessment of Ukraine” published in September 2022 by the Ukrainian government, the European Commission and the World Bank, the cost of the current restructuring and recovery of Ukraine was estimated at $349. billion.
Notably, this figure was more than 1.5 times the country’s 2021 GDP. The report indicated that such amount is expected to rise in the coming months as the war in the country continues.
GRAIN AGREEMENT CONTRIBUTES TO THE AGRICULTURAL SECTOR
Meanwhile, while the deal on grain shipments across the Black Sea has helped Ukraine’s large agricultural sector in recent months, exports of agricultural products like wheat are still well below their pre-war level. .
The Ukrainian government depends on tens of billions of dollars in foreign aid from Western countries to continue its services. (AA)