The gross domestic product of Ukraine in the first quarter of 2022, due to the war started by Russia, fell by 16% compared to the same period last year, this is the estimate of the Ministry of Economy of the country.
“Russian aggression against Ukraine has radically changed our economy. Our forecast for a decline in GDP in the first quarter of 2022 is 16%, and the annual decline could reach 40%,” First Deputy Minister Denis Kudin is quoted in a press release from the department.
According to him, those industries where remote work is impossible, in particular, aviation, maritime transportation, and the service sector, where businesses work directly with consumers, have suffered the most.
At the same time, Kudin pointed out that over the past 10 days, the economy as a whole has begun to recover, business in safe regions is returning to work, and farmers have begun sowing.
The Ministry of Economy noted that in the process of restoring the Ukrainian economy, special attention will be paid to supporting industries that directly ensure the livelihoods of citizens and strengthen the state’s defense capability. “We are talking about agriculture, food production, retail trade, utilities and energy services, industries working on mobilization orders,” the ministry said.
As reported, the Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva predicted on March 22 that the decline in Ukraine’s GDP due to the war started by Russia could be a third of the pre-war level.
Prime Minister Denys Shmygal at the end of March gave a forecast of a 35% decline and “slightly higher.”
According to the State Statistics Service, in 2021, Ukraine’s GDP grew by 3.4% after a decline of 3.8% in 2020, its nominal volume amounted to about $200 billion.
