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Ukraine’s economy shrinks 30% in first three quarters of 2022

admin2022-10-2110

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,Cars burn after Russian military strike, as Russia's invasion of Ukraine continues, in central Kyiv, Ukraine October 10, 2022. REUTERS/Gleb Garanich

BERLIN: Ukraine’s economy shrank by an estimated 30% in the first three quarters of 2022 compared with the same period in 2021, largely due to Russia’s invasion, the economy ministry says.

Bad weather in September that slowed the pace of harvesting also played a role, as did interruptions in supply from the Zaporizhzhia nuclear power plant, the ministry said in a statement.

Ukraine and Russia accuse each other of shelling the facility.

Exports in September jumped by 23% from August to their highest level since the war started in February, helped by an internationally brokered deal allowing the shipment of grain from Black Sea ports.

“The situation at the front improved in September, but the enemy continued shelling Ukrainian territory, which put pressure on business sentiment and logistics,” the ministry said.

“Further destruction of production facilities, infrastructure and residential buildings,” as well as uncertainty over how long the war would last, were hindering development and postponing the recovery, it said.

In July, Ukraine’s central bank said the economy could shrink by a third in 2022 and was expected to grow between 5% and 6% in 2023 and 2024. — Reuters


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