Ukraine’s GDP fell by a lower-than-expected 29.1% in 2022 as Russia’s full-scale invasion battered the economy. The export-dependent economy saw particularly steep drops in industry and trade, with exports falling 35%, grain production falling to 53 million tons in 2022 from 86 million tons in 2021, and steel production reduced by almost 71%.
Now, despite limited access to its ports and continued heavy fighting in the east, the government is redoubling efforts to grow exports and shore up its economy. The government expects 1% growth for 2023 on the back of moves toward diversifying overland trade routes into Poland and Romania and a stabilizing security situation.
This week the energy minister announced that electricity exports to Europe would resume after the country moved quickly to recover from Moscow’s bombing campaign against utility infrastructure. Additionally, a reopened rail line that bypasses Russia-controlled Transnistria has provided a new overland route for salt and grain exports to Moldova and Romania.