In 2022, the Ukrainian economy has stood the test of war with dignity – neither hyperinflation nor a banking crisis has overtaken the country. This is because money is regularly received from partner countries.
In 2022, the Ukrainian economy was saved by the actions of the Armed Forces of Ukraine – this is an indisputable fact. Another important factor of support was the donor countries, which provided over 1 trillion hryvnia in aid (loans and grants) to Ukraine in 2022. According to Prime Minister Denys Shmyhal, Ukraine was provided with 410 billion UAH by the USA, 390 billion UAH by the EU countries, 88 billion UAH by the IMF and 60 billion UAH by Canada. writes about it Focus In a new article “The Second War Year. Where does Ukraine get money for pensions and salaries in 2023”.
“International support has largely stabilized not only the front line, but also the financial sector. Here I will include not only the EU and US donation, but also the decision of the US and EU banking groups not to export capital from Ukraine. Vitaliy Shapran, “Many continue to work with Ukraine in the form of trade finance and support both the resumption of production in Ukraine and the export of Ukrainian products to the EU,” said economist, member of the Association of Financial Analysts.
CASE Ukraine Executive Director Dmitry Boyarchuk believes it If it were not for the injection of billions of dollars from international partners, the decrease in GDP would have been significantly greater than 30.4% (such a preliminary estimate for the decrease in GDP was recently announced by the Ministry of Economy).
“Without international financial support, it’s hard to even assess what the decline in GDP would be. Consider that we will no longer have foreign exchange reserves (since March, the NBU has sold $25.6 billion and reserves were $27.6 billion at the end of February). The absence of foreign exchange reserves means galloping inflation and devaluation with all its consequences. Entrepreneurial activity in such conditions becomes impossible, planning, forecasting the price of goods, etc. Without Western support for the economy, everyone would be engaged in the withdrawal of their assets, therefore there would be no more, ”says Dmitry Boyarchuk.
Meanwhile, the government believes that 2022 is going by pretty good indicators, as when the aggressor just started hostilities against Ukraine, there were projections of a 40% or more drop in GDP. But As a result, the preliminary estimate of the Ministry of Economy is minus 30.4%. The government believes it is possible to sustain the rapid collapse in the economy thanks to the work of the Ukrainian Armed Forces to protect the energy infrastructure.
Recall that for 2023 the Ministry of Economy will not change its forecast for now – this is GDP growth of 3.2%, as stated in the 2023 state budget.
Previously Focus According to the deputy head of the NBU, Serhiy Nikolaychuk, wrote that the decline in Ukraine’s GDP in 2022 will be deeper than previously expected. The reason is Russia’s attacks on the country’s energy infrastructure.
Source: Focus
John Holton is a seasoned author and journalist, known for his expertise in economics. He currently works as a writer at 24 news breaker, where he provides readers with in-depth analysis and commentary on the latest economic developments. With a background in finance and a talent for explaining complex economic concepts in a clear and accessible way, John’s writing is a must-read for anyone interested in staying informed about the economy.