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Ukrainian Economy Shows Signs of Recovery Despite Devastating Effects of War


Sep 6, 2023

Ukraine’s economy is experiencing growth after a significant decline last year. According to the economy ministry, the country’s gross domestic product (GDP) grew by 2.2% year-on-year in the first seven months of 2023. This recovery comes after a difficult year in 2022 when Russia launched a full-scale invasion of Ukraine, causing the economy to shrink by about one-third, marking the largest annual fall in over 30 years of Ukrainian independence.

However, despite the challenges, businesses and residents have adapted to the wartime reality, resulting in the economy performing better than expected. Nadiia Bigun, the deputy economy minister, highlighted the positive news that the number of registered entrepreneurs in Ukraine has surpassed pre-war levels, with about 2 million entrepreneurs as of the middle of summer. This growth in business is crucial as the tax revenues generated help finance the armed forces.

The government has responded to Ukraine’s economic resilience by improving its forecasts for the year. The central bank has revised its GDP growth forecast to 2.9% in 2023, up from the previous target of 2%. Furthermore, the bank expects economic growth to accelerate to 3.5% next year. However, Ukraine’s Western lenders, such as the World Bank, are more cautious in their predictions, with GDP growth forecasted at 0.5% in 2023.

By Editor

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