- Since the war started in February 2022, the Ukrainian economy currently operates with a deficit of about $40 billion in its budget, according to President Volodymyr Zelensky.
- PM Denys Shmyhal, however, said they have adapted and have worked around ways to keep their economic system and public institutions operational.
Image: Office of the President of Ukraine
While Russian attacks against Ukraine continue, Ukrainian leaders believe that this will not deter their country from registering positive economic growth.
This according to them is a result of the measures they have put in place to protect the country and start the process of rebuilding their economy.
“We are better protected now. We have our own systems.”
Since the war started in February 2022, the Ukrainian economy currently operates with a deficit of about $40 billion in its budget, according to President Volodymyr Zelensky.
Speaking to journalists from 10 African countries in Ukraine’s capital Kyiv, Zelensky said that despite this, they remain optimistic that they will grow their Gross Domestic Product (GDP) by about 5 per cent this year and next year.
“Currently the gap in our budget is about $40 billion. This is what Russia has done to us. As a good signal, our GDP is growing at 5 per cent per annum compared to previous years. That’s a good signal and the economy is recovering and this gap is going to shrink,” he said during the meeting.
Zelensky noted that before the war, they not only exported grain but also iron ore, but when the war started it all came to a halt.
He added that at the time they only imported what they needed including food.
“Right now all money we earn is spent to help the army. When you are at war you can’t develop your infrastructure, you are in the game of survival,” Zelensky added.
Prime Minister Denys Shmyhal said the Russian invasion of Ukraine has deprived them of at least 30 per cent of their GDP.
He, however, noted that they have adapted and have worked around ways to keep their economic system and public institutions operational.
Image: MFA Ukraine/Olexii Nazaruk
The PM said this has been achieved as they try to rebuild their despite the war not being over.
“Unfortunately the enemy has inflicted severe damage to us in the economy… but we are rebuilding ourselves rather fast," Shmyhal stated.
"We have more expenditure to direct for our military defence complex. This is an increase of seven times and Ukrainian businesses are optimistic and have very positive expectations for the future. Already next year, we expect our GDP will go up by 5 per cent despite the war situation.”
He added that their rebuilding efforts are more focused on infrastructure including schools and kindergartens, hospitals, bridges and revitalizing their military defence complex and capabilities.
Shmyhal pointed out that they are also fully aware and understand the 5 per cent growth dynamic is needed for the next six years to bring Ukraine back to the pre-war levels in terms of GDP.
He said experts predict that Ukraine will need an additional 10 years to get back to their pre-war production capabilities, which have largely been hindered by the Russian occupation of their land.
“What is important to mention here is that 20 per cent of our territory is still occupied by Russia, and 20 per cent of our agricultural land remains under military action or Russian control," he said.
“As of today, Russia is openly looting Ukrainian lands, stealing our territory's grain technologies and infrastructure and this will increase losses and damages that Russia has inflicted on us.”