2023-03-08T18:45:00+02:00 Economy 2024-09-15T05:45:55+03:00

Ukrainian news

Economy Ministry Estimates GDP Fall In February At 26%

Economy Ministry Estimates GDP Fall In February At 26%

The Ministry of Economy tentatively estimates the fall in GDP of Ukraine in February at 26% against a fall of 32% in January.

This is stated in the message of the Ministry of Economy, Ukrainian News Agency reports.

"The fall in GDP in February 2023 is 26% (± 2%), which is better than in January - 32% (± 2%). This is evidenced by operational estimates of the Ministry of Economy of Ukraine," the message says.

First Deputy Prime Minister - Minister of Economy Yulia Svyrydenko noted that economic activity gradually resumed in February, taking into account a significant reduction in the electricity deficit and a reduction in the duration of outages due to the resumption of all available generation types in the power system since mid-February.

"The "energy war" won by Ukraine added optimism to the business, which improved its mood for the future and intensified its activities. In general, the economic front holds - the economy continues to function, adapt, recover," said Svyrydenko.

In particular, in February, compared to January of this year, the situation in industrial production improved somewhat due to a decrease in the pressure of such a factor as a shortage of electricity, taking into account the launch of nine nuclear units.

In addition, in February there were fewer missile strikes on electric power facilities than in January of this year, and their negative impact was also leveled by greater adaptability of producers.

The Ministry of Economy estimates that the situation in many sectors of the economy is improving.

Thus, in the transport sector, there has been a gradual resumption of activity in all key modes of transport, except for air transportation, the activities of which are not currently carried out due to military actions.

Also, the situation in animal husbandry has improved somewhat, which is gradually adapting to the difficult conditions of operation, in particular in regions that were relatively less affected by the war and where farmers from front-line territories were relocated.

The expectations of business activity in the sphere of trade, which is sensitive to changes in demand, have significantly improved.

In addition, there is a gradual improvement in the situation in the construction sector.

This was due to the fact that construction works are being activated in the de-occupied territories, in particular, on the restoration of destroyed or damaged residential, industrial, as well as infrastructure facilities.

As Ukrainian News Agency earlier reported, the National Bank expects a slight increase in real GDP in 2023 - by 0.3%.

The state budget adopted by the Verkhovna Rada in November 2022 for 2023 provides for a GDP growth of 3.2%.