Decrease of Ukraine's GDP in February: The Ministry of Economy Assessed the Situation

In February 2023, Ukraine's GDP fell by 26% (±2%). The Ministry of Economy of Ukraine estimated this to be better than in January, when GDP deceased by 32% (±2%).

This is evidenced by the Ministry's operational estimates, as well as a statement by the First Vice Prime Minister, Minister of Economy of Ukraine Yulia Svyrydenko.

"In February 2023, economic activity gradually recovered, given the significant reduction in the electricity deficit and the shortened duration of outages due to the resumption of all available types of generation in the power system since mid-February. Ukraine's victory in the "energy war" has boosted the optimism of businesses, which have improved their outlook for the future and stepped up their operations. In general, the economic front is holding - the economy continues to function, adapt, and recover," Yulia Svyrydenko, First Vice Prime Minister, Minister of Economy of Ukraine, said/

According to Svyrydenko, in February 2023, compared to January of the same year, the situation in Ukraine's industry improved slightly. This was due to a decrease in the pressure of electricity shortages, taking into account the launch of 9 nuclear power units.

Also, in February, there were fewer missile strikes on Ukrainian power generation facilities than in January of this year, and their negative impact was also offset by greater adaptability of producers.

"According to the Ministry of Economy, the situation is improving in many sectors of the economy. Thus, in the transport sector, there has been a gradual recovery in activity in all key modes of transport, except for air transportation, which is currently not being carried out due to military operations.

The Ministry of Economy assured of an improvement in the agricultural sector. In particular, the livestock industry is gradually adapting to the difficult operating conditions.

"In the regions that were relatively less affected by the war and where farmers from the frontline areas relocated, expectations of business activity in the trade sector, which is sensitive to changes in demand, have significantly improved," the Ministry reported.

Moreover, the situation in the construction sector is gradually improving.

"This is due to the fact that construction work is being intensified in the de-occupied territories, in particular to restore destroyed or damaged residential, industrial, and infrastructure facilities," the Ministry of Economy explained.

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