Ukraine’s GDP fell by 29.1 percent in 2022

Ukraine’s GDP fell by 29.1 percent in 2022

The Ukrainian State Statistics Committee announced today that Ukraine’s GDP fell by 29.1 percent in 2022 compared to the previous year due to the Russian invasion that devastated the country.

A country that has been resisting with the help of Western military and financial aid has destroyed entire parts of its economy. The construction sector took the hardest hit, with a 67.6 percent drop last year.

Despite the fact that fighting persists and 20 percent of Ukraine is currently occupied, the International Monetary Fund (IMF), one of the primary funders of Kyiv, is expecting a limited, gradual economic improvement this year, as reported by Beta.

The IMF estimates that, depending on the scenario, the Ukrainian economy could move between a three percent recession and one percent growth in 2023, compared to last year’s low base. That institution predicts an acceleration of economic growth in 2024 to 3.2 percent and then to six percent in 2025.

The fund has just approved $15.6 billion in aid to Ukraine as part of a major international support plan worth $115 billion.

Ukraine was one of the poorest countries in Europe, even before the Russian attack. In 2021, Ukraine’s GDP recorded a growth of 3.4 percent.

The IMF approved a loan of 15.6 billion dollars to Ukraine

The Executive Board of the International Monetary Fund has approved a four-year loan of $15.6 billion to Ukraine as part of an international support package worth $115 billion.

The IMF announced that the decision would enable the immediate payment of around 2.7 billion dollars to Kyiv. This is the first major IMF-approved financing program for a country struggling with the aftermath of a major conflict.

The financial package of $115 billion consists of an IMF loan of $80 billion, aid and loans from other nations, as well as a potential debt relief of up to $20 billion.

In the following two years, Ukraine must fulfill specified conditions in order to ensure a successful outcome. This includes increasing tax revenue, stabilizing the exchange rate, upholding the central bank’s independence, and intensifying the fight against corruption.