Ukraine’s economy could halve this year, says finance minister
- Finance Minister Serhiy Marchenko said Ukraine’s GDP would shrink by 30-50% this year, according to Reuters.
- Ukraine’s economy has been hit by production slowdowns and a massive humanitarian crisis.
- Marchenko is expected to meet with G7 members next week to discuss the country’s finances.
Ukraine’s finance minister says the country’s economy could be half the size it was before Vladimir Putin’s forces invaded, amid a mass exodus of citizens and shutdowns industries.
Reuters reported the news, citing an unspecified TV interview on Saturday.
According to Serhiy Marchenko, Ukraine’s GDP could fall by 30-50% this year, according to the interview reported by Reuters. The comments come as the country seeks financial assistance to combat falling tax revenues while trying to fend off the Russian offensive.
Saturday, Reuters reported that Marchenko planned to travel to Washington next week with Prime Minister Denys Shmyhal and central bank governor Kyrylo Shevchenko to meet finance officials from G7 countries at a meeting chaired by the World Bank, citing sources .
In March, Reuters reported a television interview from an unspecified source in which Marchenko mentioned the war had crippled 30% of the Ukrainian economy.
“Our tax revenues do not allow us to cover our needs, the main source of income is borrowing,” Marchenko reportedly said at the time.
Its latest assessment is broadly in line with that of the World Bank provide delivered on April 10, which predicted a 45% contraction in Ukraine’s GDP this year, citing the displacement of people, damage to infrastructure and disruption of trade.
Ukraine’s economy is known for its exports of commodities like corn and wheat, which S&P Global valued to respectively 12.8% and 10.5% of world exports last year. The production and export of these and other goods were greatly disrupted by the war.
An economic crisis has been exacerbated by a huge humanitarian crisis that has drastically reduced Ukraine’s population. According to UNHCRnearly 4.8 million refugees have fled the country since February 24, further reducing the country’s ability to generate economic output.
by rising oil prices as Western countries continue to import Russian energy.