Ukraine's Economic Growth Rate -30% in Q1-Q3 This Year... "Logistics Pressure Due to Shelling"

Grain Export Resumption Leads to 23% Increase in Exports Compared to Previous Month

Ukrainian forces recapture Lyman from 'Russian annexation'.
[Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] Ukraine's gross domestic product (GDP) for the first to third quarters of this year has been recorded as having decreased by 30% compared to the same period last year.

According to foreign media on the 8th (local time), the Ukrainian Ministry of Economy stated, "Although the situation on the front lines improved last month, the enemy continued shelling Ukrainian territory, putting pressure on business sentiment and logistics."

The Ukrainian Ministry of Economy pointed out that additional damage to manufacturing facilities, infrastructure, and residential buildings, as well as uncertainty about the end of the war, are hindering economic development and recovery. Last month, adverse weather slowed grain harvesting, and power supply disruptions at the Zaporizhzhia Nuclear Power Plant were also cited as causes of economic contraction.

With the resumption of Ukrainian grain exports from Black Sea ports through international mediation, exports last month increased by 23% compared to August. This is the highest figure since the war began in February.

In July, the National Bank of Ukraine forecasted that Ukraine's GDP would decrease by about 30% this year compared to the previous year, and grow by 5% and 6% in 2023 and 2024, respectively. Recently, the World Bank projected Ukraine's economic growth rate at minus (-) 35%.

This content was produced with the assistance of AI translation services.