Why the economy in Ukraine remains combative
Since February, the Russian invasion has dealt a severe blow to the economy. According to the Kyiv School of Economics, the bombings caused $10 billion in damage to businesses. The fighting is devastating agricultural land, production of which accounted for 20% of GDP last year. The IMF estimates that it will shrink by 35% this year. And yet the economy has gradually adjusted to the war and appears to be growing again.
Example: the port of Odessa. Despite operating below normal capacity, it has been able to export 7.8 million tons of grain since July. However, the suspension of the agreement on agricultural production by the Russians this Saturday, October 29, again threatens its activity. Even reduced by a third compared to the pre-war level, the 2022 harvest is expected to reach 65 to 70 million tons. Ukrainian successes on the battlefield also played a role. In August, about as many people entered Ukraine from the European Union as citizens leaving the EU. On the business side, the proportion of those working at more than half capacity reached 80% in September, compared to 57% in May. The result of growing security and government support. In particular, a program has helped 745 companies relocate to safer regions.
also readGas, wheat, nuclear power: The three strategic issues of the Ukraine conflict explained in a graphic
It is always my pleasure to provide insightful information on important topics and if you have learned something from my article then I thank you for taking the time to share it with your friends or family.
We put a lot of heart and invest a lot of time trying to bring you the most interesting articles.
You would encourage us to do it even better in the future. Thank you!