Ukraine’s GDP fell by 29% in 2022 due to the Russian invasion

Ukraine’s Gross Domestic Product (GDP) fell 29% in 2022 compared to the previous year as a result of Russian military aggression, which blocked the country’s main ports, and paralyzed and destroyed entire regions, the Ukrainian Statistics Service reported today in a statement.

The sector most affected by the Russian military invasion was construction, with a collapse of 67%, followed by manufacturing, transportation and services, which saw their business volume reduced by more than 40%. Only the public administration and NGOs increased their economic activity during 2022.

The steepest decline occurred in the second quarter, when the economy contracted 36%. The indicator improved slightly in the following two quarters, when the contraction was around 30%.

In the first quarter, during which Russian military aggression began (February 22, 2022), Ukrainian GDP fell by 14%.

Both the Ukrainian Government and the International Monetary Fund (IMF) forecast economic growth of around 1% for 2023.

The World Bank will allocate $200 million to repair energy infrastructure in Ukraine

The World Bank announced Wednesday that it will allocate $200 million to repair Ukraine’s energy infrastructure, during a meeting of Ukrainian officials with leaders of the financial institution in Washington.

The aggression of the Russian regime damaged more than 50% of Ukraine’s energy infrastructure between the fall and winter months, as stated by the global lender in a statement in which it specified that the east of the country, where the fighting is fierce, has been particularly affected.

The funds will be provided by the Ukrainian Relief, Recovery, Reconstruction and Reform Trust Fund (URTF) with the goal of providing up to an additional $300 million from partners “as the project increases its scope,” it said. the bank.

The project will focus on emergency repairs of electricity and heating infrastructure.

“Energy infrastructure has suffered $11 billion in damage last year and is one of the areas where Ukraine most urgently needs help,” said World Bank Chief Operating Officer Anna Bjerde.

The World Bank has mobilized more than $23 billion for Ukraine since the Russian invasion began in February last year, of which it has disbursed $20 billion to date.

(With information from EFE, AFP and Reuters)

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