Ukraine's economy continues to recover after a period of difficult challenges

Ukraine's economy continues to recover from a period of difficult challenges. According to the Institute for Economic Research and Policy Consulting (IER), Ukraine's real gross domestic product (GDP) in the second quarter of 2023 grew by 20-21% compared to the same period last year. However, the growth rate is expected to slow down in the second half of the year.

One of the factors that supported the high growth rate of the economy is the low comparison base in the same period of 2022. Such growth rates, particularly in agriculture, contribute to the improvement of real gross value added, but according to the IER, a slowdown may be observed in the second half of the year.

Further recovery remains on track in a number of manufacturing industries, particularly in machine building and food processing, although performance remains lower than in pre-war 2021.

The increase in the government's GDP growth forecast to 3.2% in 2023, as well as the NBU's improved forecast to 2% compared to previous estimates, indicates an optimistic outlook for Ukraine's economic development.

It is important to note that while the economy is showing positive trends, government and financial institutions are drawing attention to the need to support the country's economic stability and development. In particular, the payments of assistance to veterans and victims of Nazi persecution, including disabled people and combatants, are aimed at improving their social situation and honoring their service to the country.

It should be noted that, according to forecasts, economic growth may slow down in the second half of the year. An important task for the government and economic entities remains to promote stable and sustainable development of the country, as well as to provide effective social support to citizens.