Ukraine attempts to grow economy despite continued war in the east

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.

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