Ukrainian Economy Grows Faster Than Expected After War Damage: Update 2023

06 Sep 2023 at 12:04 Update: an hour ago

The Ukrainian economy has grown slightly in the first seven months of this year. The country’s economy is recovering from war damage faster than expected, the Ukrainian Ministry of Economic Affairs reports.

In brief

The Ukrainian economy grew by 2.2 percent compared to last year. More entrepreneurs and Western support help the economy. The Ukrainian central bank is positive about the rest of the year.

The economy of the country at war grew by 2.2 percent compared to the same period last year, the ministry reported on Wednesday. Last year, the Ukrainian economy contracted by almost a third.

The war has caused a lot of damage to infrastructure such as bridges and buildings, energy networks and farmland. Because many men have gone to the front to fight against the Russians, there is also less labor force in the country.

According to the ministry, economic growth is very important. The taxes companies pay can be used to pay for the war and repair the damage.

So now there is a recovery. According to the Ukrainian government, there are now even more entrepreneurs than before the war. Western support for the country is also helping the economy.

The Ukrainian central bank has revised its growth forecast for the whole of 2023 upwards to 2.9 percent. Earlier, the bank predicted 2 percent. The World Bank is a little more cautious. It expects growth of 0.5 percent in Ukraine this year.

Image: Getty

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2023-09-06 10:04:49
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