Analysts analyzed economic activity in Ukraine during the conflict.
The authoritative publication The Economist noted the recovery of economic activity in Ukraine, despite the war. The reason for this is called victory on the battlefield and dealing with grain.
It was noted that the share of Ukrainian companies, whose turnover exceeded 50% of the pre-war level, reached 80% in September compared to 58% in May.
“The country’s economy has adapted slowly and with difficulty to the war and seems to be growing again… A grain deal sponsored by the UN in July allows Ukraine to export agricultural products; at least of 7.8 million tons of grain have already been exported. This year the country expects a harvest of 65-70 million tons, which is a third below the pre-war level, but quite a decent result, given the circumstances … Because food can be transported by sea, rail capacity is freed up for the export of metals,” the article said.
The publication also notes “good fiscal policy” during the war in Ukraine. In particular, in the fact that it is possible to avoid a “bankopad”.
“Banks entered the war well-capitalized through consolidation and cleanup after 2014. The digital skills honed during the COVID-19 pandemic helped them operate in difficult conditions. The independence of the NBU, established in the reforms after 2014, helped to avoid bankruptcies,” – said in the material.
Analysts note the importance for Ukraine of the extension of the grain agreement, which expires on November 19. But in Russia they are talking about the possibility of terminating the agreement.
The Kremlin complains that its fertilizer exports are hampered by Western sanctions and Ukraine wants to reopen an ammonia pipeline from Russia to the port of Pivdenny, 20km northeast of Odessa. Ukrainian officials fear that such requests are a reason for canceling deals,” the publication notes.
In addition, analysts advise Ukraine to raise some taxes, which will more effectively deal with the budget deficit.
Remember, the Ministry of Economy reported that according to the results of the three quarters of this year, the fall in GDP in Ukraine is estimated at 30%.
Ukrainian authorities expect the economy to shrink by around 33% this year, and grow by more than 15% next year.
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.