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Ukraine’s Economy Likely To Shrink Further In 2023

Mount Equity Group Tokyo Japan > News > Markets > Ukraine’s Economy Likely To Shrink Further In 2023

Russia’s re-invasion of Ukraine in February 2022 took a heavy toll on the Ukrainian economy. Moscow focused on destroying the Russian-speaking industrial heartland in the southeast, displacing millions of workers, damaging crops, smashing the power grid and blocking exports from Ukraine’s seaports. As a result, Ukraine’s gross domestic product (GDP) plunged 30 percent in 2022 (Me.gov.ua, January 5). Worse had been expected, yet the economy was able to weather the storm largely thanks to Western assistance. In 2023, everything will depend on the course of the war. If it drags on, or if Ukraine loses, the economy will continue to shrink. In any case, Ukraine will heavily rely on Western financial assistance throughout the year.

Apart from the defense industry, which Russian missiles targeted first, metallurgy, Ukraine’s main export industry before the war, took the hardest hit. The nation’s second- and…

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