Ukraine suffers biggest economic contraction in independent era due to war

Ukraine suffered the biggest economic contraction in more than 30 years in 2022 because of the war with Russia, but said foreign aid and the “indestructible spirit” of its people helped to avoid an even worse scenario.

Preliminary data from the Economy Ministry on Thursday showed a 30.4% drop in gross domestic product last year, and economic analysts said risks and uncertainty remain high, especially if Russia continues to attack infrastructure. criticism in Ukraine.

Economy Minister Yulia Svyrydenko described the decline in GDP as the biggest in any year since Ukraine gained independence from the Soviet Union in 1991, but said the drop was smaller than expected.

“In 2022, the Ukrainian economy suffered the greatest losses and damages in the entire history of independence, inflicted by the Russian Federation,” Svyrydenko, who is also first deputy prime minister, said in a statement.

“The success of Ukraine’s defense forces on the front lines, the coordinated work of the government and companies, the indestructible spirit of the population and the speed of reconstruction of damaged critical infrastructure units, as well as the systemic financial support of international donors allowed keep us on the economic front and continue our drive towards victory”.

Ukraine’s economy is export-oriented, but exports have declined since the February 24 invasion of Russia. The Ministry of Economy reported this week that exports are down 35% compared to 2021, and physical volumes are down 38.4% this year.