Business news from Ukraine

Overview of main economic indicators of Ukraine at end of 2023 by Experts club

6 February , 2024  

The article collects and analyzes the main macroeconomic indicators of Ukraine. In connection with the entry into force of the Law of Ukraine “On Protection of the Interests of Business Entities during Martial Law or a State of War”, the State Statistics Service of Ukraine suspends the publication of statistical information for the period of martial law, as well as for three months after its termination. The exception is the publication of information on the consumer price index, separate information on statistical indicators for 2021 and for the period January-February 2022. The article analyzes open data from the State Statistics Service, the National Bank, and think tanks.

Demographic indicators of Ukraine
Director of the Ptukha Institute of Demography and Social Studies of the National Academy of Sciences of Ukraine, Academician Ella Libanova, predicts that about 50% of citizens will return to Ukraine after the war ends. At the same time, Libanova believes that if the economy is restored to pre-war levels, Ukraine will not be able to return the projected 4.5 million citizens.
She also drew attention to the fact that, according to Eurostat, there are currently 4.2 million Ukrainian military migrants in the European Union.
Earlier, Libanova described depopulation and labor shortages as an inevitable scenario for Ukraine.
According to the estimates she presented at the Regional Economic Forum, as of the beginning of this year, the population in the government-controlled areas was 31.6 million people, and now it has slightly increased.
Libanova pointed out that the population forecast for the beginning of 2033 within the borders of 1991 Ukraine ranges from 26-35 million people.

Economic recovery
Ukraine’s real gross domestic product (GDP) growth slowed to 8.2% in the third quarter of 2023 compared to the same period last year.
The NBU, which has raised its overall GDP growth forecast for this year to 4.9%, estimates the direct positive contribution of a higher harvest at 1.3 percentage points.
“At the same time, the key risk for our economy remains a longer duration and intensity of the war, as well as a decrease in the volume or loss of rhythm of international assistance, the resumption of a significant electricity shortage due to further destruction of the energy infrastructure and other risks,” said Maksym Urakin.

Analysis of Ukraine’s foreign trade
Maksym Urakin also drew attention to the factor of the growing negative foreign trade balance, which has been observed since the beginning of the war.
“The negative balance of Ukraine’s foreign trade in goods in January-September 2023 increased by 3.2 times compared to the same period in 2022 – $19.402 billion. This means that the cost of purchasing the goods Ukraine needs is almost $20 billion more than the income from exporting Ukrainian goods to other countries,” said Urakin, PhD in Economics.

Ukraine’s financial situation in 2023
According to the expert, the main factors characterizing the state of the Ukrainian economy are public debt, international reserves, and inflation.
“As of September 30, 2023, Ukraine’s public and publicly guaranteed debt amounted to UAH 4,886.13 billion, or USD 133.62 billion. This is a slight decrease compared to the historical maximum set in August,” Maksym Urakin said.

The expert noted that the main risks to the economy remain the duration of the war and the instability of international aid.
“In the third quarter of 2023, Ukraine’s GDP growth slowed to 8.2%. The negative balance of foreign trade increased 3.2 times, which is an alarming signal. The public debt has slightly decreased compared to August figures, but in 2024 it may exceed the country’s GDP for the first time, which poses significant risks to economic stability,” the economist said.

Thus, the economic situation in Ukraine, according to the founder of the Club of Experts, continues to require close monitoring and adaptation of strategies in response to changing conditions. Macroeconomic indicators of Ukraine and the world were discussed in more detail in one of the video programs of the Experts club

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