“Dramatic figures”: NBU estimated Ukrainian losses from war with Russia

Direct losses of material assets and infrastructure of Ukraine due to the full-scale occupation of the RF Armed Forces are now estimated to be almost. 140 billion dollars. On April 4, 2023, Central Bank Deputy Governor Serhiy Nikolaychuk expressed this in an interview with Observer Finansowy.

According to him, 140 billion dollars is 2/3 of Ukraine’s pre-war gross domestic product (GDP). He also noted that due to the war, 8 million citizens had to leave the country, which was more than 20% of the population before the total invasion.

“These are dramatic numbers, but the economy is still alive. We see the economy adapting a bit to the new conditions and we actually expect to achieve at least a small but slow growth of 0.3% of GDP this year,” Sergei said. said. .Nikolaycuk.

He also added that according to the NBU, the decrease in the GDP of Ukraine by 2022 is 30%. This result shows that the business world, the government and the people of Ukraine are quickly adapting to the new conditions.

But of course the results could have been even better, but unfortunately in the fourth quarter Ukraine faced constant Russian terrorist attacks on our energy infrastructure, which has become an additional burden on our economy.”

What is GDP?

Gross domestic product, It reflects the market value of all final goods and services produced by all sectors of the economy during the year. The gross product index reflects the “cost” of the economy as well as how it is developing or deteriorating.

Is everything getting better? What will happen to Ukraine’s GDP in 2023?

A few weeks ago, the Ministry of Economy said that the decline in GDP decreased by 26% (±2%), thus improving the figures by 32% (±2%) compared to January 2023. The Ministry emphasizes that the improvements have taken place on the backdrop of increased economic activity.

“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 energy system resumed operation from mid-February.” The Ministry of Economy stressed.

In addition, 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.

Previously Focus He wrote about what inflation will be in Ukraine in 2023. Therefore, in February, the head of the Central Bank Andrei Pyshny said that inflationary processes will slow down in the spring. This will be facilitated by the tight monetary policy of the NBU, low global inflation and subsequent adaptation of the business.