Ukraine’s real GDP will grow by only 2% in 2023. The reason is Russia’s attacks on Ukrainian energy infrastructure in 2022.
These data were published by the World Bank.
Meanwhile, the World Bank’s experts expected back in January that Ukraine’s GDP would grow by 3.3% but changed their forecast recently. Their assessment was influenced by the results of Russian missile and drone attacks on Ukrainian energy infrastructure in the fourth quarter of 2022.
One of the key problems is that a large part of the working-age population has left the country due to the war. The World Bank also predicts that public finances will remain under pressure despite official external support, including the recently agreed IMF financing of $15.6 billion under the Extended Fund Facility.
The Bank estimates reconstruction and recovery costs to be 2.6 times the 2022 level of Ukraine’s GDP.
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