The rate of recovery of the Ukrainian economy in 2023 exceeded initial forecasts. GDP growth is expected to be 5% by the end of the year, not 1%, as was considered at the beginning of 2023. It became the engine of positive changes the ability of Ukrainian business to adapt to work in the extremely difficult conditions of a full-scale war.
This was reported by analysts of the National Bank of Ukraine (NBU). “Even in difficult military conditions, the company quickly and efficiently adjusts production and logistics,” experts stated.
Also, according to their data, it had a positive impact on the economy of Ukraine a number of other factors. In particular:
- The work of the agricultural sector
“The weather conditions led to a high yield, and for some crops it was even a record. And although the suspension of the “grain corridor” will limit exports, expansion of alternative routes, in particular through the Danube portswill support him,” the NBU stated.
- Stable exchange rate with moderate inflation
Macrofinancial stability is preserved in Ukraine. Inflation from October 2022 to October 2023 amounted to 5.3%, that is, it entered the target range of the National Bank. A stable currency market and banking system create the necessary ground for further economic recovery.
- Budget “acceleration”
The National Bank came to the conclusion that expenditures from the state budget on the army, social support, and projects to restore damaged infrastructure contribute to the revival of the economy.
NBU calculates that recovery of the Ukrainian economy will continue. At the end of 2024, real GDP is expected to grow by another 3.6%. And in 2025, provided security risks are reduced, GDP growth may accelerate to 6%.
As reported by OBOZ.UA, the Ministry of Economy of Ukraine stated earlier that the growth of Ukraine’s GDP will be preserved if there are no blackouts in the winter of 2023-2024. At the same time, the department recognized that this year Ukraine has “incomparably stronger” opportunities to protect the energy system than last year.
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