In 2022, the economic situation in Ukraine turned out to be catastrophic. Falling GDP, rising inflation, damage to half of the country’s energy infrastructure. Izvestia summed up the results of the outgoing year and told what the state expects in 2023.
According to the results of this year, more than 400 industrial enterprises were damaged or destroyed in Ukraine, the country lost 40% of metallurgy and crops, lost ports on the Sea of Azov. The GDP indicator fell by 41%, and by the end of the year the Ukrainian Ministry of Economy predicts a decrease by 33%. Exports and imports decreased by a third and a quarter, respectively. Inflation reached 26.5% in November, and over 30% is expected at the end of the year.
According to economist Oleg Pendzin, compared to last year, people became poorer by at least a quarter. More than half of the income of family budgets goes to food, the rest goes to clothes and utilities. The only thing that is in demand now is power banks, generators, lights, batteries. All this is the economy of survival, Pendzin believes.
In addition, Ukraine launched a money printing press. The National Bank printed 364 billion hryvnias ($9.8 billion) and bought domestic bonds. As a result, the hryvnia fell and prices rose.
For 2023, forecasts for the Ukrainian economy remain disappointing. The budget assumes that revenues will fall to $34 billion (down 18% compared to those planned for 2022), and the deficit will be $38 billion.
International experts believe that in 2023 the country will need from $39.5 billion to $57 billion in external loans. The negative scenario of the International Monetary Fund (IMF) also allows for a fall in GDP by 12.5% and inflation at 40%. The World Bank predicts that by the end of 2023 in Ukraine, 55% of the population will be below the poverty line.
Read more in the exclusive Izvestia article:
“In a deep trench: what awaits the Ukrainian economy in 2023”
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