ICU analysts explain what exactly ensured the growth of Ukraine’s economy by 5% last year.

Ukrainian GDP growth of almost 5% resulted from stabilization following the previous year’s drop of 29.1%, ICU group analyst Vitaly Vavryshchuk said.

“Additional investments or infrastructure projects play a role in this recovery,” the expert explained.

He named the following reasons for stabilization:

1. Defined and regular international financial assistance – at the beginning of 2023, it was unclear whether there would be any. The government received all the volumes it had planned.
2. From February 2023, blackouts stopped – businesses operated with a stable electricity supply.
3. The Ukrainian maritime grain corridor without Russia works better than the previous “grain initiative,” giving greater business security.
4. The front line did not move – Ukraine did not achieved much in its counteroffensive, but Russia did not advance either.
5. All these factors combined to give consumers a greater sense of security, and they began to consume more, save less, and buy more. Enterprises accordingly increased their capacity.