Ukraine’s economy will shrink by 30.4 percent in 2022. That is the estimate of the Ukrainian Ministry of Economic Affairs. It is the strongest contraction since the country gained independence from the Soviet Union in 1991. In 2021, the economy of Ukraine still grew by 3.4 percent.
Nevertheless, the economic contraction as a result of the Russian invasion is less than expected, says Minister Yulia Svyrydenko. According to her, this was partly due to the successes of the Ukrainian armed forces on the battlefield and the speed with which damaged or destroyed infrastructure has been repaired.
“Systematic financial support from international partners” also enabled Ukraine to contain the contraction, she said. According to Svyrydenko, the ongoing missile attacks on the energy infrastructure are putting pressure on activity.
This article is also part of our live blog: Ukrainian economy shrank by 30 percent after Russian invasion