In 2023, the Ukrainian economy demonstrated a modest recovery, with a GDP growth of 4.6% following a previous decline of 29.1%.
Source: A report by the United Nations Department of Economic and Social Affairs (DESA) on World Economic Situation and Prospects 2024, as reported by Ukrinform news agency
The report reads that last year, Ukraine’s economy demonstrated a certain resilience amidst the issues of the current war, especially in terms of interrupted electricity supply.
Quote: “There is a slight improvement this year, but this is an improvement on paper because the economy has already shrunk, and it’s very painful,” said Shantanu Mukherjee, Chief, Policy Analysis Branch, Division for Sustainable Development, UN-DESA.
He added that the slight improvement does not signify a full economic recovery compared to the pre-war period.
The UN report notes an increase in private consumption and capital expenditures for reconstruction in Ukraine. Agricultural production was lower than in the pre-war period, and grain shipments from Black Sea ports remained problematic after Russia withdrew from the Black Sea Grain Initiative.
In turn, alternative export routes face logistical difficulties due to the Russian attacks on ports on the Danube.
Temporary restrictions imposed by the EU in the summer on grain imports from Ukraine to five regional countries, followed by individual restrictions imposed by Hungary, Poland, and Slovakia, have also impacted railway and road transportation.
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