Economic development in Ukraine is currently characterized by Russia’s war of aggression. Starting with the gross domestic product, through inflation rates to international donations, the association “Der Mittelstand, BVMW e.V.” gives an overview of the current developments in Ukraine.#

GDP decline, inflation slowing

Investment company Concorde Capital expects a 30 percent drop in GDP in Ukraine, but looks positively to the future. In 2023 it could grow by 8 percent if certain factors caused by the war were to stabilize again.

While the Ukraine has been struggling with a drastically rising inflation rate since the beginning of the war, the curve is now flattening out. Inflation is mainly caused by disruptions in logistics and production.

International trade and national industrial parks

The Ukrainian foreign trade is further expanded. In this year alone, ten product groups gained access to six different countries. For example, Ukraine has been exporting meat products to Montenegro and pet food to Singapore since 2022.

At the same time, two new industrial parks were opened in Ukraine. Both are located in the Chernivtsi region in the west of the country. The parks should attract investors and support the local economy. The focus here is on wood processing and textile production.

International Financial Aid

Ukraine has received $18 billion from the international community since the war began. In the next one to two years, the country will need a further 105 billion dollars to carry out necessary repairs, remove mines and do justice to social issues, according to the BVMW.

For more information, visit the website of “Der Mittelstand. BVMW e.V.”.

Source: Der Mittelstand. BVMW e.V. Bundesverband (german)