The economy of Ukraine is growing again


The authoritative publication The Economist has noticed the restoration of economic activity in Ukraine, despite the war. The reason for this is the successes on the battlefield and a grain transaction.

It is noted that the share of Ukrainian companies, whose turnover exceeds 50% of the pre -war level, has already reached 80% in September compared to 58% in May.

“The country’s economy was slowly and hard to adapt to war and, it seems, is growing again … A grain transaction concluded in July under the auspices of the UN allows Ukraine to export agricultural products; Since then, at least 7.8 million tons of grain have been exported. This year, the country expects a crop of 65-70 million tons, which is a third lower than the pre-war level, but quite a decent result, taking into account circumstances … Since food can be delivered by sea, railway capacities are released for metals, ”the said in article.

The publication also notes “good financial policy” in wartime in Ukraine. In particular, in the fact that it was possible to avoid ATM.

“Banks entered the war well capitalized due to consolidation and cleaning after 2014. Digital skills, honed during the pandemia of the Covid-19, helped them work in difficult conditions. The independence of the NBU, established during the reforms after 2014, helped prevent bankruptcy, ”the material said.

Analysts note the importance for Ukraine to extend the grain agreement, the validity of which expires on November 19. But in Russia they talk about the possibility of terminating the agreement.

“The Kremlin complains that Western sanctions prevent it from exporting fertilizers, and wants Ukraine to open ammonia from Russia to the Pivodnoy port, which is 20 km northeast of Odessa. Ukrainian officials are afraid that such requirements are an excuse for the cancellation of the transaction, ”the publication notes.

In addition, analysts advise Ukraine to increase some taxes, which will more effectively deal with the budget deficit.