The World Bank lowered the forecast growth of Ukraineʼs GDP in 2023

Author:
Anna Kholodnova
Date:

The World Bank has changed its forecasts for Ukraineʼs GDP. Now in 2023, growth is expected at the level of 2%, instead of 3.3%, as predicted in January of this year.

This is stated in the report "Global Economic Prospects".

The forecast was changed mostly because of the economic upheavals caused by the war. In particular, due to the destruction of the energy infrastructure in the fourth quarter of 2022.

According to the estimates of the World Bank, the costs of reconstruction of Ukraine are 2.6 times higher than last yearʼs GDP, and according to official data, there are more than 8 million Ukrainian refugees in the EU.

  • According to the results of the first three quarters of 2022 , the fall in the gross domestic product of Ukraine amounted to approximately 30%. At the same time, the Ministry of Economy pays attention to the positive factors of economic growth. Among them is the improvement of the dynamics of transport thanks to the growth of the export of agricultural products by sea transport and the increase of freight transportation by railway.
  • In October 2022, the World Bank for the first time improved Ukraineʼs GDP growth forecast for the next year — from 2.1 to 3.3%.