Ukraine’s economy stabilizes
A year ago, the Novus supermarket chain shelves in Ukraine’s Kyiv were rapidly emptied as its supply networks – had internal and large impacts. The new product has become a bit of a panic-buying.
Oleksiy Panasenko, Director General of Operations in Popular Operations, says how Novus, another major retail chain managed to adapt.
And when Ukrainian troops forced the Russian army to leave the capital in the spring, the retail sector and a wide range retreated.
The European Business Association of Ukraine data has revealed that the members’ end has fully restored the operations.
But then missile attacks began in October, with a severe blow to Ukraine. Russia has struck power transmission networks and substations nationwide, robbing them during winter freezing and a heavy blow to heavy industry.
The economy was reduced by a third last year, the largest decline since Ukraine’s independence from the Soviet Union in 1991. Before Russia’s invasion, the annual economy totaled $200 billion.
Impact of the war on Economy of Ukraine
The war is in its second year; the challenges are excellent. Last summer, Ukrainian officials reduced more configurations on the country’s economy, particularly to disclose an unproportionate export transaction.
The treaty saved Ukrainian agriculture, accounting for about 12.4% of GDP and 41% of the total war.
Since mid-February, Ukrainian grain exports for the 2022-2023 season have fallen from June to June by 29.31%, up to 29.72 million tons.
The great increase in military spending, including the army’s salaries, also led to the economy, said Vitaly Vavrishchuk, head of studies at ICU Investment House. Ukraine spent 1.5 trillion in 2022 on its defense sector – subject to one-third of its economic product.
But despite the positives, Ukraine is strongly behind where it was before the war.
The invasion destroyed schools, ports, roads, and bridges. The Kyiv School of Economics has evaluated the damage to infrastructure due to the war, with $138 billion in December.
Poverty rates have increased, and the budget deficit is expected to reach $39 billion in 2023 after tax revenues collapse. The government depends on Western assistance – most of the United States and the EU.
Panasenko said the company lost about 31% of stores in Kyiv in December and about 21% in January.
The steel sector, is the hardest blow. Ukraine was the 14th largest manufacturer of steel before the war.
