The Ministry of Economy preliminary estimates that the increase of the volume of gross domestic product attained about 5% last year.
First Deputy Prime Minister – Minister of Economy Yulia Svyrydenko reported this data during the discussion “Economy in 2023: Overview of Key Figures” organized by the Center for Economic Strategy in cooperation with the German Economic Team.
The rapid adaptation of Ukrainian business to the current extremely difficult conditions was emphasized by Svyrydenko. Operations of more than 90% of enterprises that had shut down at the beginning of the war have already been resumed.
She says that the field of public administration and defense showed the largest growth. Military salaries and funding for defense programs are primarily concerned by this.
Svyrydenko said that construction also developed at a fairly high pace. Damaged critical infrastructure was actively restored due to investment demand, which was formed due to significant budget funding. Favorable weather conditions had a positive impact on agriculture: 80 million tons of grains and oilseeds were harvested by farmers. The recovery in consumer demand and supply of goods drew the growth in domestic trade, and the growth in demand for investment products drew the manufacturing industry.
Simultaneously, the rhythmic flow of international financial assistance played a key role in ensuring the stability of the Ukrainian economy. It reached $75 billion over the two years of the full-scale war.
The Deputy Prime Minister said that 67% of the funds came from Ukraine’s main partners, the EU and the U.S. Due to this, the country’s priority needs of the budget were covered, social spending was ensured and financial stability was maintained, even the preconditions for macroeconomic stability were created this year. It resulted in the domestic GDP increase by about 5% in 2023, according to preliminary estimates, while in 2022 the economic decline reached 28.8%. This is the so-called recovery growth.
According to the reports, the Ukrainian economy’s growth by 3.2% this year and in 2025 – by 6.5% has been predicted by the World Bank. The WB estimated last year’s growth more pessimistically than the Ministry of Economy’s – at 4.8%.
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