According to the results of 2022, Ukraine’s economy shrank by more than 35% due to a full-scale Russian invasion. The monthly deficit of the country’s budget is estimated at 5 billion dollars.
“Ukraine’s economy has shrunk by more than 35% in 2022 due to the massive destruction of infrastructure, including railway and other connections with neighboring countries, road networks and bridges. Manufacturing and trade activities have been disrupted, and there are large losses of the workforce due to migration or conscription.” – says the UN report.
According to experts, the economy is also significantly affected by attacks by the Russian Federation on energy infrastructure facilities, blocking of ports and damage to metallurgical plants.
As noted, the direct monetary financing of the National Bank covered about a third of the total needs of public spending. This caused the depletion of foreign exchange reserves, which pushed Ukraine to devaluation of the national currency.
According to UN economists, although the European Union plans to allocate 18 billion euros for economic support to Ukraine in 2023, this may not be enough.
“The prospects of the Ukrainian economy in 2023 and 2024 are very uncertain and will depend on many factors, in particular, on the cessation of hostilities and the start of reconstruction work,” international economists emphasize.