In February, compared to January of the current year, the situation improved somewhat, not only in industrial production, but also in other sectors of the economy.
According to the 2023 results, Ukraine’s gross domestic product (GDP) decreased by 26% (±2%), which is better than 32% (±2%) in January. This was reported in the press service of the Ministry of Economy.
“Economic activity gradually recovered in February 2023, given a significant reduction in power outages and a reduction in downtime, as all existing types of generation in the power system resumed operation from mid-February,” the report says. .
As Economy Minister Yulia Sviridenko noted, the business world became optimistic after Ukraine managed to win the energy war with Russia. Against this background, the enterprise stepped up its work. Thus, in February, compared to January, there was an improvement in the situation in industrial production, as electricity shortages were significantly reduced after the launch of nine nuclear units.
The Ministry of Economy notes that the situation in other sectors of the economy is gradually improving. For example, in the transport sector, activity is increasing in all major modes of transport.
The situation in livestock has also improved somewhat, gradually adapting to harsh working conditions, especially in areas that were relatively less war-affected and where farmers had moved from the frontline areas.
The construction industry is also booming. This is facilitated by the intensification of construction work in unoccupied areas, where destroyed or damaged residential, industrial and infrastructure facilities are restored.
What is GDP?
Gross domestic product reflects the market value of all final goods and services produced in all sectors of the economy in a year. The gross product index reflects the “cost” of the economy as well as how it is developing or deteriorating.
What will happen to the Ukrainian economy in 2023?
Economy Minister Yulia Sviridenko in a column Focus In the summer of 2022, he said that the government has several scenarios for the Ukrainian economy for 2023. The official believes that in order to grow the economy, the country needs to take several steps, the first of which is the restoration of enterprises.
“Our first task is to restore such businesses that give people jobs, allow them to earn a living for themselves and their families, and at the same time create additional value for the Ukrainian economy,” Yulia Sviridenko said.
The second step should be to return the economy to a pre-war state with a GDP of $200 billion. According to Yulia Sviridenko, this can be done through a policy of returning Ukrainians from abroad, an active policy of job creation and maintenance. macro-financial stability.
The third step for the country’s GDP growth, Yulia Sviridenko calls attractiveness for the capital.
“Ukraine should become the most attractive country for capital. We are talking about tax rates, ease of doing business, transparency of rules and rule of law,” said the Minister of Economy. said.
Previously Focus He wrote about the impact of Ukrainian refugees on the economies of host countries and shared estimates of how many Ukrainian immigrants could stay abroad.
Moreover Focus The NBU said it believes inflation in Ukraine will begin to decline in the spring of 2023. Therefore, in February, the head of the NBU Andriy Pyshny noted that the tight monetary policy of the Central Bank, the fall in world inflation and the subsequent adaptation of the business world will contribute to this.
Source: Focus
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