In Ukraine, the war has put an end to many economic activities, creating a considerable shortfall.
Ukraine’s gross domestic product collapsed 15.1% in the first quarter of 2022 compared to the same period last year, as a result of the war with Russia, according to data published Thursday by the state statistics service. The Russian invasion launched on February 24 had a very strong impact on the Ukrainian economy, shutting down many companies and forcing others in particular to reorient their production.
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If the International Monetary Fund (IMF) anticipates an even more marked fall in Ukrainian GDP, by 35% this year, the Minister of Finance, Serguiy Marchenko, had said in mid-May in an interview with AFP that he expected a fall “from 45% to 50%in 2022. Inflation also fell in Ukraine in May to 2.7%, however reaching 18% over one year, the Ukrainian State Statistics Service announced on Thursday. The increase in the prices of food products continued to accelerate, in particular for basic products, such as rice (+14.3%), fruit (11.5%), or even fish, cereals, vegetables and pasta (between 3.2 and 5.9%). At the same time, the price of eggs fell sharply (-21.2%).
As a consequence in particular of the war with Russia, inflation had soared to 16.4% in April over one year. It could reach 20% at the end of the year over twelve months, according to projections by the Ukrainian Central Bank. On June 2, the Central Bank of Ukraine sharply raised its key rate to 25%, from 10% previously, in an attempt to stem runaway inflation and protect the hryvnia, the national currency, from the economic repercussions of the Russian invasion. .
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