KYIV (Reuters) – Ukraine’s gross domestic product (GDP) fell 29.1% in 2022 as Russia’s invasion hit the economy, the national statistics service said on Wednesday. end of the day.
The final GDP figure for 2022 is slightly better than the 30% drop previously forecast by the government.
The February 2022 invasion of Moscow left tens of thousands dead, dislodged millions, damaged heavy industry, the power grid and the agricultural sector, and led to the loss of large tracts of land in the south and east of the country.
Ukraine now has very limited access to Black Sea ports, which are vital for grain and metal exports, the mainstays of Ukraine’s economy.
According to the government, GDP could increase by 1% in 2023 thanks to the improvement of the situation in the transport, retail and construction sectors.
The Economy Ministry said earlier this year that exports fell 35% in 2022 from a year earlier, and physical volumes fell 38.4%.
Ukraine’s grain harvest fell to 53 million tonnes in 2022 from a record 86 million tonnes in 2021 due to the invasion.
Another key sector of the economy, metals, cut its steel production by almost 71% after several large factories were destroyed or occupied.
(Reporting Pavel Polityuk; Nathan Vifflin, editing by Kate Entringer)
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