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Ministry of Economy estimates fall in GDP in Q1, 2022 at 16%

Destroyed aircraft An-225 Mriya

Destroyed aircraft An-225 Mriya

Gross domestic product (GDP) of Ukraine in the Q1 over the outbreak of war fell by 16% compared to the same period last year. This assessment was given by First Deputy Minister of Economy Denys Kudin.

Note that almost two-thirds of the last quarter Ukraine lived in peace.

The fall in GDP for the year can reach 40%, according to the Ministry of Economy.

Kudin noted that over the past 10 days, the economy has begun to recover, businesses in safe regions are returning to work, and farmers have begun sowing.

In the process of economic recovery, special attention will be paid to supporting industries that directly support people's livelihoods and strengthen the state's defense capability. These are agriculture, food production, retail trade, utilities and energy services, and industries fulfilling orders for the needs of the Armed Forces of Ukraine.

IMF Managing Director Kristalina Georgieva said on March 22 that the decline in Ukraine's GDP over the war could be a third of the pre-war level.

At the end of March, Prime Minister Denys Shmyhal predicted a 35% decline and "slightly higher."

In 2021, Ukraine's GDP grew by 3.4% after a decline of 3.8% in 2020, its nominal volume amounted to about $200 billion.

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