The crisis did not happen. How Ukraine managed to avoid economic collapse during the year of the big war

During the year of the war, Ukraine’s economy has dropped less than initially expected. The RBC-Ukraine article below describes how the worst-case scenario was prevented and when the economy will resume growth.

Hlib Vyshlinsky, Executive Director of the Centre for Economic Strategy (CES), notes that amid active hostilities in Ukraine, the financial system has remained operational, banks have been operating almost continuously, and there has been no collapse in devaluation or hyperinflation.

“The effect on the economy was limited to the direct impact of the war on demand and production chains, and the financial crisis had no additional effect.

Fortunately, the state did not try to play the war economy and limit the role of the private sector,” he said in a commentary to RBC-Ukraine. In addition, Vyshlinsky believes that the opening of the grain corridor played an important positive role for the economy.

At the same time, Russia’s blocking of the grain corridor could pose a serious risk to the economy this year.

Expectations of possible problems with grain exports could lead to a reduction in planted areas in the spring. Vyshlinsky believes this can also be attributed to the risks for the economy this year.

Source: RBC-Ukraine