Ukraine’s GDP fell 15.1% in the first quarter of 2022, compared to the same period last year, due to the war with Russia, according to data released today by the country’s statistical office.
The Russian invasion on February 24 hit the Ukrainian economy hard as many companies shut down and others were forced to reorient their production.
The International Monetary Fund expects that the fall in GDP will be much more significant, reaching 35% this year. Even more pessimistic was Finance Minister Sergie Martchenko in an interview with Agence France-Presse in mid-May, where he spoke of a “45-50%” decline.
Inflation in May reached 18% on an annual basis.
Food prices continue to rise, mainly basic items such as rice (+ 14.3%), fruit (11.5%), fish, cereals, vegetables and pasta (increase from 3 , 2 to 5.9%). The price of eggs, on the other hand, decreased by 21.2%.
According to forecasts of the Central Bank of Ukraine inflation may reach 20% by the end of the year. On June 2, the central bank raised the key interest rate from 10% to 25% in a bid to stem galloping inflation and protect the hryvnia, the national currency, from the economic effects of the war.
Source: Capital
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