Gradual Recovery of Economic Activity in Ukraine

by Olha Povaliaieva
Thursday, July 14, 2022
Gradual Recovery of Economic Activity in Ukraine

GDP is not growing yet, but even against the backdrop of the ongoing war, there is a slowdown in decline in the level of business activity in the country

On July 13, in an interview with BBC News Ukraine, deputy governor of the National Bank of Ukraine Serhii Nikolaychuk spoke about the resumption of the country's economic advancement.

"In fact, economic activity is already gradually recovering after a significant drop at the beginning of the war. Of course, this does not mean that GDP is already growing, but the depth of the fall is decreasing. Turnover of restaurant establishments, and a decrease in the share of non-working enterprises," Serhii Nikolaychuk.

It is essential for Ukraine not only to restore the pre-war level of GDP but to increase it. For this, it is essential to unblock Ukrainian ports, where there is already a partial breakthrough.

"Given that the main route for its supply before the war was the Black sea, which is actually blocked. Our international partners are helping to establish export logistics, so the result is already there. Unblocking the Black sea ports, the existing capacity of export routes will not be enough to resume the pre-war volumes of grain exports," Nikolaychuk argued.

The deputy governor of NBU said that the government of Ukraine is temporarily introducing some options for Ukrainian business. In particular, the deadline for payment of export-import manipulations was extended.

"This will allow businesses to buy the necessary products for the production process and increase the opportunities for exporting and importing goods in the face of logistical problems."

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