Due to the war, Ukraine’s economy shrank by 30.4% over the year.

The Ministry of Economy has preliminarily estimated the drop in Ukraine’s GDP by the end of 2022 at 30.4%. This, in comparison to 2021 when Ukraine had economic growth of 3.4%. It is noted that this year’s indicator is objectively the worst result for all the years of Ukraine’s independence. However, it is better than most experts predicted at the start of a full-scale invasion. At that time, estimates ranged from a 40-50% fall in the GDP, or even more. In December, the decline in GDP was estimated at 34%, which is also better than the November estimates, which were around 37%. The fall for the fourth quarter amounted to 35.5% following efforts to stabilize the infrastructure situation with the energy supply after the shelling in November. However, further terrorist missile attacks by the Russian Federation caused additional damage to the energy infrastructure and continued to pressure business sentiment and activity.