Dispatch from Kyiv: spring returns to Ukraine’s economy

Financial Times economic commentator Martin Sandbu visited Kyiv, reviewed our Tracker of the economy during the war and made several key conclusions:

Ukrainians are amazingly adaptable in the economic aspect. Behind the return to moderate growth are thousands of stories about the rapid recovery of business processes.

The level of digitization can also cause envy in many Western European countries and the USA.

Last year’s 30% drop in GDP largely reflects the loss of territory and population. But this does not describe the economic situation throughout the country (CEC Director Hleb Vyshlinsky spoke about this in more detail in a podcast for FT).

The CES Tracker also demonstrates the improvement of the economic situation: business expectations are growing, and the labour market is returning to the indicators before the start of a full-scale war.

Ukrainian refugees would return faster if the free part of Ukraine was protected from air attacks.

Returning people pay more taxes, which reduces the need for budgetary assistance. So increasing military support is not only morally right but also much cheaper for international partners.

Source — Financial Times.