The industry most affected by the full-scale war on the territory of Ukraine is metallurgy, which lost more than 60% of its capitalization.
The Ukrainian economy suffered significant losses due to the war
According to a report by the World Bank, 20% of Ukrainian businesses directly faced destruction, while 70% lost income.
The bank's report is based on a survey of entrepreneurs and an analysis of open sources.
70% of respondents experienced a drop in income. On average, enterprise revenue fell by half compared to 2021.
Regionally, the eastern regions were the most affected, where the income fell by three times, the south of the country was affected to a lesser extent, where the drop is recorded on average at 60%, in the western regions this indicator is approximately 40%.
As a result of hostilities, approximately 20% of enterprises were destroyed. As in the case of incomes, the east of the country suffered the greatest destruction, where approximately 47% of enterprises faced destruction, to a lesser extent this applies to the southern regions, where the figure is 29%, the report says.
Metallurgy was most affected by the war, which lost more than 60% of its capitalisation.
The World Bank also lists the problems faced by Ukrainian businesses, in addition to the direct destruction caused by the war:
issues with energy supply after Russian shelling;
disruption of logistics due to hostilities and blockade;
drop in demand;
shortage of workers due to mobilisation and departure abroad;
lack of finances.
The World Bank predicts a slight recovery for the Ukrainian economy after a drop of more than 30% in 2022. GDP growth of 5% for 2023 is associated with significant state budget expenditures.
The state budget of Ukraine has a significant deficit
The deficit of Ukraine's state budget in 2023 reached UAH 1.33 trillion, which is UAH 418.9 billion more than in 2022.
The Ministry of Finance reported such operational data on January 2 regarding the State Treasury.
For 2023, the revenues of the state budget amounted to UAH 2.67 trillion, and the general fund is UAH 1.66 trillion. The international grant aid amounted to UAH 425.4 billion (of which UAH 400.5 billion from the USA).
Cash expenditures of the state budget for the past year exceeded UAH 4 trillion, particularly the general fund – UAH 3.03 trillion, or 98% of the schedule (compared to 93% a month earlier).
According to the Ministry of Finance, the state budget 2023 was implemented with a deficit of UAH 1.33 trillion, particularly the general fund of UAH 1.36 trillion, against the planned public fund deficit of UAH 1.83 trillion.
In December 2023, Ukraine's state budget deficit amounted to a record 285 billion UAH compared to 145.1 billion UAH in November and 98.4 billion UAH in October.
According to the general fund, the deficit jumped to UAH 274.4 billion from UAH 162.5 billion in November and UAH 87.7 billion in October.
The Ministry of Finance noted that cash expenditures of the state budget in December also became a record and exceeded UAH 548.2 billion compared to UAH 337.9 billion in November and UAH 292.1 billion in October.
According to the general fund, expenditures increased to UAH 397.7 billion from UAH 286.3 billion in November and UAH 228.1 billion in October.
As noted by the Ministry of Finance, in December 2023, revenues to the state budget's general fund increased slightly - to UAH 127.1 billion from UAH 121.7 billion in November, which, however, is less than UAH 139.4 billion in October.
At the same time, US grant-in international aid amounted to UAH 20.5 billion; in November, it was absent, and in October, it amounted to UAH 42 billion.
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