January 16, 2024, 12:24
In 2023, the Ukrainian economy showed signs of recovery. The Ministry of Economy believes that the growth rate of real GDP last year was about 5%, although in 2022 real GDP decreased by 28.8%. These figures were announced by First Deputy Prime Minister – Minister of Economy Yulia Sviridenko during the discussion “Economy in 2023: a review of the main figures”, organized by the Center for Economic Strategy together with the German Economic Team.
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On a monthly basis, the highest GDP growth rates compared to the same month of the previous year were recorded in March 2023 (+30% compared to March 2022) and in June (+16.4% compared to June 2022). According to the Ministry of Economy, real GDP in December 2023 was 3.8% higher than in December 2022.
A further decline in real GDP amid the continuation of hostilities in the country was avoided thanks to the strengthening of Ukraine’s air defense (primarily the country’s energy infrastructure), the adaptation of enterprises to work in extreme conditions, the partial relocation of production to the west and center of the country, as well as the restoration of the Black Sea export corridor.
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The main driver of GDP growth in the macroeconomic context was an increase in domestic demand and, in particular, investment in the restoration of production and infrastructure facilities damaged by the aggressor. Domestic demand was supported by large-scale external benefits and rising real wages in the economy. In 2023, the budget attracted $42.5 billion in external loans and grants aimed at paying pensions, social assistance and salaries in the public sector. At the same time, nominal wages in all sectors of the economy increased by 24% over 9 months of 2023, with average prices growing by 16% over the same period.
We previously wrote that in 2023, fiscal officials failed to collect money from businesses as planned. The State Customs Service fulfilled the annual plan for collecting payments by 93.9% (-25.7 billion UAH), and the tax service exceeded it by 100.7% (+4.9 billion UAH).
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