Budget revenues have fallen sharply, the monthly deficit is about 5 billion dollars. The direct monetary financing of the NBU covered about a third of the total state expenditure needs.
According to the results of 2022, the economy of Ukraine has shrunk by more than 35%, the monthly budget deficit is estimated at $5 billion. This is stated in the UN report, informs Ukrinform.
“Ukraine’s economy has shrunk by more than 35% in 2022 due to the massive destruction of infrastructure, including railways and other connections with neighboring countries, road networks and bridges. Production and trade activities have been disrupted, there are significant losses of labor due to migration or conscription” – note the UN experts.
It should be noted that the state of the economy is significantly affected by Russian attacks on energy infrastructure, blocking of ports and damage to metallurgical plants.
Budget revenue has fallen sharply, the monthly deficit is about $5 billion, the report says.
At the same time, the National Bank’s direct monetary financing covered about a third of the total state expenditure needs. This caused the depletion of foreign exchange reserves, which prompted Ukraine to devalue the national currency.
However, Ukraine receives significant bilateral and multilateral financial support, the report’s authors note. Aid from the European Union, the United States, the IMF, the World Bank and other structures covered almost half of common needs in 2022.
At the same time, aid is provided partly in the form of loans, which increases the debt burden.
According to UN economists, although the European Union plans to allocate 18 billion euros in economic support to Ukraine in 2023, this may not be enough.
“The outlook for Ukraine’s economy in 2023 and 2024 is highly uncertain and will depend on many factors, in particular the cessation of hostilities and the start of reconstruction work,” the report said.
According to the estimates of its authors, the post-war reconstruction of Ukraine will require enormous resources – from 350 to 500 billion euros.
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