The economic situation in Ukraine has improved significantly over the year: the Ministry of Finance expects GDP growth

Ekaterina Zhiriy16:09, 05/19/23

According to the Minister of Finance, the economy is significantly supported by the payment of taxes by Ukrainian entrepreneurs.

Ukraine is in a much better economic situation than last year, and this year GDP growth is expected to be 3.2% against last year’s fall of 29.1%. According to the press service of the Ministry of Finance , this is stated in the column of the Minister of Finance Sergei Marchenko.

“If at the end of 2022 the economy fell by 29.1%, then tax revenues to the general fund of the state budget (not taking into account a number of factors, such as growth due to inflation and forced temporary non-reimbursement of VAT) increased by 2% against 2021, amounting to 627, UAH 7 billion. This became possible only thanks to the incredible efforts of business,” Marchenko wrote.

According to him, today Ukraine is in a much better economic situation compared to a year ago. 

“Inflation is declining at a faster pace than originally forecast, from 26.6% in December 2022 to 17.9% in April 2023. We refrain from monetary financing in 2023, and the GDP growth forecast is raised to 3.2% “, – said the head of the Ministry of Finance. 

But the chief minister cited the heroism of Ukrainian entrepreneurs who, despite unprecedented challenges and absolute uncertainty, continued to work and pay taxes. 

According to Marchenko, there is not a single industry in the country that has not suffered losses from Russian aggression: disruption of supply chains, problems with logistics, lack of fuel, lack of electricity and, in the end, regular shelling of the Russian Federation significantly complicated, but did not stop their work. 

“And if in the first month of the war business in Ukraine was practically paralyzed, today 90% have already resumed their activities. The ability of Ukrainian business to be flexible and adaptable even in such extremely difficult conditions is incredible. And this is extremely important, because we finance the army exclusively for account of taxes and domestic borrowing,” the minister wrote. 

Marchenko added that it was especially impressive that even in the temporarily occupied territories, entrepreneurs paid taxes to the Ukrainian budget, despite the oppression of the occupying authorities. 

“For understanding, for the period from the beginning of the war until June 2022, 2.3 million taxpayers who are registered in the territories of hostilities or temporarily occupied territories paid taxes, fees and payments for UAH 278.1 billion (Kharkiv, Kherson, Zaporozhye region),” the minister said.

Economic situation in Ukraine

In March, the Ministry of Economy of Ukraine adjusted its estimate of the fall in GDP in 2022 to 29.2%, while the preliminary estimate of the contraction of the economy was 30.4%.

The law on the state budget for 2023 provides for real GDP growth of 3.2%.

In April, the World Bank worsened its forecast for the growth of Ukraine’s gross domestic product in 2023 from 3.3% to 0.5%. And the National Bank at the end of April improved its forecast for economic growth in 2023 from 0.3% to 2%.

(C)UNIAN 2023


  1. That’s wonderful. To have GDP growth during a war and the crap Ukraine is going through is amazing.

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