The Club of Experts and Maksim Urakin, PhD in Economics, have prepared a summary of the main macroeconomic indicators of Ukraine in the beginning of 2023.
So, the Ministry of Economy of Ukraine revised the macro forecast for 2023, worsening the GDP growth forecast from 3.2% to 1%, primarily because of the assumption that the military operations will not end in the middle of the year, and will last “almost a whole year”, said Deputy Minister Sergei Sobolev.
Ukraine’s real gross domestic product fell 31.4% in the fourth quarter of 2022 compared to the fourth quarter of 2021 after falling 30.8% in the third quarter, 37.2% in the second and 15.1% in the first, the State Statistics Service said Monday. At the same time, according to the consensus forecast of eight companies and non-governmental institutions, which was released by the Center for Economic Strategy, the real gross domestic product of Ukraine in 2023 will decline by 0.1%, with estimates ranging from a decline of 4.6% to growth of 5.5%. The economic recovery will be barely visible this year, expected to moderate GDP growth of 2%, which will bring real GDP at the end of this year at 70-72% of prewar 2021, such macroeconomic forecast published by ICU investment group.
According to deputy governor of the NBU Serhiy Mykolaychuk, the economic situation in Ukraine in the first quarter of 2023 is developing much better than the National Bank of Ukraine (NBU) expected in its January forecast, especially in the energy supply, so it is highly probable that the central bank will improve its current GDP growth forecast for this year by 0.3% at the end of April. Meanwhile, the International Monetary Fund forecasts the dynamics of the Ukrainian economy this year from 3% decline to 1% growth followed by 3.2% growth in 2024 and 6.5% growth in 2025.
And the International Monetary Fund (IMF), which previously estimated the dynamics of the Ukrainian economy this year from 3% decline to 1% growth, is inclined to the fact that GDP growth in 2023 may be at the upper limit of this range.
Ukraine’s GDP, after falling by 29.2% last year, will grow by 0.5% this year and by 3.5% next year, predicts the World Bank, which in January this year expected more rapid growth: by 3.3% in 2023 and by 4.1% in 2024.
At the same time, the real gross domestic product of Ukraine after growing by 3.4% in 2021 in 2022 due to full-scale Russian military aggression fell by 29.1%, and the negative balance of Ukraine’s foreign trade in goods in January-February 2023 increased 3.4 times compared to the same period in 2022 – to $3.713 billion from $1.083 billion.
The state budget deficit of Ukraine in February 2023 increased to 88.8 billion UAH from 72.3 billion UAH in January, including the general fund deficit to 93.2 billion UAH from 78.9 billion UAH.
The aggregate state debt of Ukraine in February decreased by 0.5%: in dollar terms by $0.59 billion – to $116.01 billion, in UAH terms – by UAH 21.62 billion, to UAH 4.24 trillion.
At the same time, at the end of January 2023, Ukraine’s consolidated balance of payments was $1.2 billion in surplus, while in January 2022 the deficit was $1.8 billion.
International reserves of Ukraine as of March 1, 2023, according to preliminary data, amounted to $28.865 billion, which is 3.5%, or $1.064 billion, less than in January 2023 due to interventions of the National Bank to sell currency to cover the difference between supply and demand in the foreign exchange market.
The growth of consumer prices in Ukraine in February 2023 slowed to 0.7% from 0.8% in January, returning to the level of December last year.
The saturated market of Ukraine and its geographical location make our country an attractive market for foreign goods. However, importing goods to Ukraine is a complex process that requires knowledge of legislation, international relations, and customs clearance procedures. These and other issues were discussed by the founder of the Club of Experts Maxim Urakin and the President of the Ukrainian Exporters Club Yevheniia Lytvynova in a new video on the YouTube channel “Club of Experts”.
According to Maksym Urakin, before starting to import goods, it is necessary to conduct a detailed analysis of the market and legislation of Ukraine and the exporting country, as well as calculate all costs associated with delivery, customs clearance and taxes.
“This will help you draw up a clear action plan and avoid unpleasant situations during the import process,” the expert emphasized.
Yevheniia Lytvynova, President of the Ukrainian Exporters Club, also emphasizes the need to research the market and check the reputation of potential suppliers.
“Market research and checking the reputation of potential partners can help you find a reliable supplier,” she said.
According to Yevheniia Lytvynova, successful import of goods requires a thorough analysis of all aspects of the importer’s future business strategy.
“Before you start importing goods, you need to conduct a detailed analysis of the market, legal requirements and your capabilities, as well as calculate all the costs associated with delivery, customs clearance and taxes. This will help you draw up a clear plan of action and avoid unpleasant situations during the import process,” emphasized Lytvynova.
Regarding the documents to be prepared for importing goods, Lytvynova noted that the contract between the importer and exporter, invoice, transportation document (e.g., waybill or bill of lading), quality certificate and certificate of origin should be put in the forefront.
“In addition to these basic documents, additional documents may be required depending on the characteristics of the goods and the requirements of Ukrainian legislation. In particular, licenses, certificates of conformity, permits and other documents confirming compliance with safety, hygiene, environmental requirements, etc. may be required,” she explained.
Maksym Urakin also emphasized that studying local legislation and choosing a reliable supplier are also very important steps in the import process. According to the experts, in order to successfully sell goods in Ukraine, it is also necessary to take into account the difficulties that may arise after their delivery.
“Even if the goods are of high quality and interesting, they still need to be sold. But here in Ukraine, even after obtaining certificates and relevant permits, sales can be restricted due to various customs barriers, which leads to breach of contract. Therefore, we advise our companies to conduct a detailed analysis of the market and legal requirements. This will allow them to prepare the right documentation and comply with all requirements,” said Yevgeniya Lytvynova.
To increase export sales, experts recommend improving product quality and providing buyers with more information about their goods.
“Nowadays, many buyers check the quality of goods and their compliance with standards. If your products don’t meet the requirements, they simply won’t buy them,” emphasized Maksym Urakin.
In this regard, experts advise to focus on developing the quality of goods and their competitiveness. In addition, according to Maxim Urakin, it is important to participate in international exhibitions and forums where you can find new partners and establish contacts with potential suppliers.
Thus, according to the experts, it is very important to comply with all the requirements and norms set by law when importing goods, conduct a detailed market analysis and check the reputation of suppliers. It is also important to ensure the quality of goods and timely delivery, while considering all possible risks and costs. Importing goods can be a very profitable business if you organize it properly. Experienced experts advise to study the market and determine your capabilities to avoid unpleasant situations and ensure successful business development.
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The decline in the real gross domestic product (GDP) of Ukraine in the first quarter of 2023 compared to the same period last year will slow down to 19% from 35% and 30.8%, respectively, in the fourth and third quarters of 2022, such is the forecast of the National Bank Ukraine has published the Inflation Report on its website.
The European Bank for Reconstruction and Development (EBRD) has downgraded its forecast for the growth of the Ukrainian economy in 2023 to 1% from 8%, which it expected in September last year, according to the updated Regional Economic Prospects published on Thursday.
Losses in annual GDP growth in 2023 will amount to 1.9 percentage points (p.p.), taking into account the positive effect of 0.5 p.p. due to the use of generators by businesses, and in 2024 losses will decrease to 0.6 p.p. thanks to the gradual recovery of the system, according to the baseline scenario of the macroeconomic forecast of the National Bank of Ukraine (NBU).
The negative balance of Ukraine’s foreign trade in goods in 2022 increased by 2.3 times compared to 2021 – to $11.125 billion from $4.771 billion, the State Statistics Service reported on Tuesday.
The growth of consumer prices in Ukraine in January 2022 accelerated to 0.8% from 0.7% in December and November, which, however, is significantly lower than 2.5% in October and 1.9% in September. According to it, in January last year, inflation was 1.3%, so in annual terms, in January 2023, it decreased to 26% from 26.6%.
As of February 15, foreign aid accounted for 68.8% of the sources of financing the state budget deficit since the beginning of this year, Head of the Verkhovna Rada budget committee Roksolana Pidlasa told Interfax-Ukraine.
The majority of members of the monetary policy committee of the National Bank of Ukraine (NBU) at a meeting on January 25 noted that they consider the base key policy rate forecast to be realistic with it remaining at the level of up to 25% until at least the first quarter of 2024, the NBU website reported.
In January, Ukraine exported 25% less agricultural products through the grain corridor than in December due to the deliberate actions of Russian inspectors to delay vessels in the Bosphorus.
The volume of construction work performed in Ukraine in January-September 2022 decreased by 56.5% compared to the same period in 2021, to UAH 66.3 billion, according to the State Statistics Service of Ukraine.
Economic Monitoring’s Project Manager – PhD in Economics, Maksim Urakin
The fall in real gross domestic product (GDP) of Ukraine in 2022 is estimated at 30.4% [±2%], which is better than preliminary forecasts, the Economy Ministry said. After falling by about 30% in 2022, the Ukrainian economy may lose from zero to 5% this year if the hot phase of the war continues until the third quarter, but next year its growth will exceed 10%, founder and head of Dragon Capital investment company Tomas Fiala gave such a macro forecast.
The National Bank of Ukraine (NBU) will worsen the forecast estimate of real GDP growth in Ukraine in 2023 from 4% to 1-3.3%, while inflation by the end of the year will slow down growth to 19-21%, bankers polled by Interfax-Ukraine believe.
The National Bank of Ukraine (NBU) has downgraded its forecast for the growth of the country’s gross domestic product (GDP) in 2023 to 0.3% from 4% in the previous forecast, which is largely due to the extension of the base scenario with a full-scale war for another six months – until the beginning of 2024.
The Ministry of Economy confirms the forecast for the growth of the Ukrainian economy in 2023 by 3.2%, despite the worsening of its forecast by the National Bank of Ukraine (NBU) from 4% to 0.3% this week, First Deputy Minister Denys Kudin has said.
The negative balance of Ukraine’s foreign trade in goods in January-November 2022 grew 2.3-fold compared to the same period in 2021, to $8.524 billion from $3.635 billion, the State Statistics Service reported.
Inflation in Ukraine accelerated to 27.5% in December, but remained below the October forecast of the National Bank (30%), according to the macroeconomic and monetary review published by the NBU.
Consumer price growth in Ukraine in December 2022 remained at the level of November – 0.7% compared to 2.5% in October, 1.9% in September and 1.1% in August, returning to July level, the State Statistics Service of Ukraine reported.
State budget expenditures to support the Armed Forces of Ukraine in the form of the purchase of military equipment, weapons, ammunition, defense products, and personal protective equipment in December amounted to UAH 38 billion (11.5% of all expenditures) compared to 18.4 UAH billion in November (7%) and UAH 35.9 billion in October (16.1%).
According to the forecast of the Ministry of Economy, the grain harvest in Ukraine in 2023 will be about 49.5 million tonnes, which is better than the estimate of the National Bank of Ukraine (NBU) at 46 million tonnes, First Deputy Minister Denys Kudin told.
PhD in Economics, Maksim Urakin
Last year thanks to the efforts of the association Ukrsadvindindprom and some Ukrainian wine producers, Ukraine after a 14-year break regained its membership in the International Organization of Vine and Wine (IOVW, International Organization of Vine and Wine).
On the 9-10th of March 2023 in France the General Assembly of IOVW took place, in which the representative from Ukraine, the head of the Public Association “The Association of Gardens, Winegrowers and Wine-makers of Ukraine” Volodymyr Pechko took part.
International Organization of Winegrowing and Winemaking is an intergovernmental organization, established according to the Treaty of April 3rd, 2001. IOVW is successor of the Intergovernmental Organisation – International Bureau of Vine and Wine (BIVW), set up according to an agreement of eight countries (France, Spain, Tunisia, Portugal, Hungary, Luxembourg, Greece and Italy) in Paris on November 29, 1924.
The organization provides recommendations to the wine-growing and wine-making industries, which are adopted by the European Community, thus emphasizing the influence of the IOWAV on the regulation and trade processes (EU countries produce about 70% of the world’s wine).
The organization’s main objectives are:
– The health benefits and quality of wine;
– protection of interests of the wine industry and creation of favorable market conditions;
– harmonization of standards and compliance of analysis methods;
– protection of geographical indications;
– guarantee of purity and origin of products;
– combating fraud and unfair competition.
Currently, Ukrainian scientists, including representatives of the scientific center “Tairov Institute of Viticulture and Winemaking” actively work in the committees of the IOVV NAAS of Ukraine.
According to IOVW, there are 47 countries in the world today that produce wine on an industrial scale. However, not all of these countries have individual states or regions that are specifically designated as wine producing. The top five largest wine-producing states include Italy, France, Spain, the United States and Argentina. These five countries account for more than half of the world’s wine production. It is worth noting that the ranking can change from year to year depending on factors such as weather conditions, yields and demand.
“According to historical data, until 1991, Ukraine was one of the largest wine-producing regions of Europe. At the same time, Ukrainian winemaking was integrated into the Soviet wine industry along with Georgia and Moldova. In the late 1980s, wine production in Ukraine peaked at about 120 million decaliters per year, which was about one-third of total wine production in the Soviet Union. By comparison, production in 2020 was about 35 million decaliters,” explained Volodymyr Pechko, head of the Ukrsadvinprom association.
He also reminded that in the first years of independence, huge wineries became uncompetitive and lost the market, which led to a crisis of the entire industry.
“In recent years, winemaking began to revive largely due to small wineries and wine tourism in our country. But everyone is now hamstrung by war, so the way out for all of us is to find new markets for our products,” Pechko stressed.
As of February 1, 2022, the total area of vine plantations in Ukraine by all categories of farms amounted to 34.0 thousand hectares, gross harvest of grapes – 257.5 thousand tons. However, after the outbreak of hostilities, almost a quarter of the area under vineyards are temporarily occupied or are in the war zone.
In turn, the deputy head of the association “Ukrsadvinprom” Maksim Urakin noted that Ukraine can produce and export a much larger volume of wine than today.
“In January 2023, Ukraine produced 422 thousand decaliters of wine, with about 328 thousand decaliters sold on the domestic market during the same period. And taking into account the fact that during winter months the production level is lower due to seasonal factor, the export potential of Ukrainian winemaking remains significant”, – said Urakin.
According to the expert, finding partners and entering new markets is not an easy thing to do as there is fierce competition in this segment.
“Most of the major wine producing countries support their producers and encourage them to export. Ukraine will not be able to establish itself as a major winemaking country without systematic government support for domestic producers and without the search for new markets and participation in exhibitions, forums and conferences. Situationally, the industry may also be helped by the fact that because of the hostilities, millions of our citizens were forced to go abroad, where they became local consumers. Including through them we can increase the export of our goods, including wine”, – says Urakin.
This year, representatives of Ukrsadvinprom association and leading Ukrainian winemakers are taking part in ProWein international exhibition on behalf of Ukraine.
This year the exhibition will take place from March 19 to 21. Ukrainian stand will feature products of 10 winemakers under the common brand Wines of Ukraine:
1. Beykush Winery (Nikolaev region)
2. Father’s Wine VB (Ternopil region)
3. Prince Trubetskoy Winery (Kherson region)
4. Chateau Chizay (Transcarpathian region)
5. Stakhovsky Wines (Transcarpathian region)
6. Biologist Craft Winery (Kyiv region)
7. Colonist Winery (Odessa region / Southern Bessarabia)
8. Villa Tinta (Odessa region / Southern Bessarabia)
9. My Wine by Eduard Gorodetsky (Odessa region)
10. 46 Parallel Wine Group (Odessa region).
International exhibition ProWein is one of the largest and most important wine and spirits exhibitions in the world, which is held annually in Dusseldorf, Germany. The event attracts thousands of exhibitors and visitors from all over the world, including wineries, wine merchants, sommeliers and industry professionals. ProWein is hosted by Messe Düsseldorf, the leading organizer of international trade fairs, and usually takes place over three days in March. A wide range of products, including wines, spirits, beer and soft drinks, as well as accessories such as glassware and wine storage solutions, are on display.
One of the key features of ProWein is an extensive program of seminars, tastings and master classes designed to showcase the latest trends and developments in the wine and spirits industry. These events are led by experts from around the world and cover a wide range of topics, from viticulture and winemaking to marketing and sales.
Interfax-Ukraine – information partner of the events
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At the end of 2022, 6 Ukrainian junior squash players are in the top 10 in their age categories.
In 2022, the Ukrainian sport, despite the war, not only survived, but also continued to develop. Our athletes in this difficult time continue to please us with decent results in the international arena. And if in such popular sports as soccer and boxing we managed to maintain the pre-war development potential, many lesser-known disciplines encountered significant difficulties last year. We can mention here the cancellation or postponement of competitions, as well as the disruption of the training process.
Squash, on the whole, successfully coped with the challenges of 2022, maintaining a positive momentum of development. In August, on the courts of the capital fitness center “SPORT LIFE” there was a charity tournament “Zenit Ukraine Open 2022”. Athletes from Romania, the United States, Moldova, Lithuania as well as players from many regions of Ukraine competed for awards in five categories.
The organizers of the largest squash tournament in Ukraine are planning to hold it this year as well.
“We hope that our Zenit tournament will return this year to the sunny Odessa from which it had to move to Kiev due to the military action,” said one of the organizers of this squash tournament, Maxim Urakin.
Very good results on the courts of international tournaments are shown by Ukrainian juniors. In particular, six Ukrainian athletes are in the top 10 in their age categories. Dmytro Scherbakov, who currently occupies the second position in the world ranking of young squash players BU19, was able to achieve the greatest result last year.
You can find more details about the positions of Ukrainian juniors in the world squash rankings in the infographic:
As Dmitry Shcherbakov, the head of racquet sports of the SportLife network, stated, in 2022 our juniors proved that they are one of the strongest in Europe.
“At the team championship of Europe-2022 among juniors to 17 years, our squash players got the bronze medal, leaving behind only England and France,” – Shcherbakov said.
Vyacheslav Savelov, children and juniors squash coach, thanked everyone who supported the sport in 2022.
“Many thanks to sponsors, patrons, coaches, parents of our children and all those who supported and supported Ukrainian squash and our athletes during this difficult time,” – he stressed.
The high results of our athletes in the youth and adult ratings give hope for the successful development of squash in Ukraine in 2023.
