Ukraine’s economy shrank by 29.2% last year

Ukraine’s economy shrank by 29.2% last year

According to the estimates of the Ministry of Economy, the decline in GDP was 29.2% in 2022.

"Given the better dynamics of the fourth quarter, according to the estimates of the Ministry of Economy and taking into account the statistical data of the State Statistics Service, the decline in GDP at the end of the year was less than 30% and amounted to 29.2%. This became possible thanks to the coordinated work of the government, the parliament, the help of international partners, and the high adaptability of business and the population. Together, this allowed us to hold the economic front and continue our movement towards victory," said First Deputy Prime Minister – Minister of Economy of Ukraine Yuliya Svyrydenko, the Ministry’s press service informs.

However, there are still negative trends that prevent the economy from starting to recover. The Ministry of Economy notes depressed household consumption which was mainly focused on the purchase of essential goods and services.

Read also: State Statistics Service: Real GDP fell by 31.4% in 4th quarter

Also, among the current trends, there is a continuing decline in investment activity in war conditions which was partially compensated by the forced investment by businesses and the state in the purchase and installation of a significant number of alternative power sources. A positive role was played by large-scale overhauls of energy infrastructure facilities, restoration of destroyed houses and road facilities, which was made possible thanks to international financial assistance, as well as further expansion of financial business support programs.

Experts note the persistence of negative pressure in export-import operations due to Russia’s artificial delays of ships as part of the "grain initiative". However, foreign economic activity was supported by the expansion of logistics routes to EU countries and the effect of the EU Regulation, in particular, the abolition of customs duties and quotas for certain types of products.

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