Ukraine’s economy showed some resilience to war in 2023, – UN report

In 2023, Ukraine’s economy showed a slight recovery, with GDP growth of 4.6% after a previous drop of 29.1%.

This is stated in the World Economic Situation and Prospects 2024 Report prepared by the United Nations Department of Economic and Social Affairs (DESA).

According to the report, last year Ukraine’s economy demonstrated some resilience to the effects of the current war, especially in terms of electricity supply.

“This year, there is a slight improvement, but it is an improvement on paper because the economy has already shrunk, and it is very painful,” said Shantanu Mukherjee, director of the department’s Economic Analysis and Policy Division.

At the same time, he added that a slight improvement does not mean economic recovery compared to the pre-war period.

The UN report notes that private consumption has increased in Ukraine, and capital spending on reconstruction has increased. Agricultural production is lower than in the pre-war period, and grain shipments from Black Sea ports remain problematic after Russia’s withdrawal from the Black Sea Grain Initiative.

In addition, alternative export routes are facing logistical difficulties due to Russian shelling of ports on the Danube.

The report says that temporary restrictions imposed by the EU in the summer on grain imports from Ukraine to five countries in the region, followed by individual restrictions imposed by Hungary, Poland and Slovakia, have also affected rail and road transportation.

Tags: Ukraine, war