The war between Ukraine and Russia has entered a protracted phase, which carries the risk of prolonged economic problems.
Economic activity is stabilizing in Ukraine, but the threat of a protracted war increases the medium and long-term risks of economic development. This is stated in the message of the National Bank.
function news4527550() {
$.get(‘//’ + window.location.host + ‘/ajax/module.aspx?spm_id=444&id=4527550&lang=2&IsAjax=true’, function (data) { $(‘#nk4527550’).html(data); });
}
news4527550();
“As a result, the Ukrainian economy is suffering huge losses from the death and displacement of citizens, the destruction of critical infrastructure and logistical arteries, the destruction of businesses and potential production,” the report said.
This situation exacerbates the risks of economic activity suppression, exacerbating supply shocks and a significant imbalance in inflation and exchange rate expectations.
At the same time, short-term risks for the economy have weakened. “This was facilitated by the success of the Armed Forces of Ukraine at the front, the further adaptation of the business and population to the military situation, the intensification of international aid, as well as the positive effect of the anti-crisis measures of the NBU and the government,” the NBU notes.
At the same time, the central bank added that “economic activity has stabilized, although at a lower level than before the war.”
According to the forecast of the NBU, the recession in the Ukrainian economy will continue in the first quarter of 2023, and the increase should start from the second.
News from Correspondent.net on Telegram. Subscribe to our channel Athletistic
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.