Ukraine's economy falls 30.4% in 2022 because of war - minister

The economy ministry said Russian missile attacks on Ukraine's energy infrastructure continued to put pressure on business activity and sentiment.

Cars burn on a street after a Russian military strike, amid Russia's attack of Ukraine, in Kherson, Ukraine, December 24, 2022. (photo credit: Ukrainian Presidential Press Service/Handout via REUTERS)
Cars burn on a street after a Russian military strike, amid Russia's attack of Ukraine, in Kherson, Ukraine, December 24, 2022.
(photo credit: Ukrainian Presidential Press Service/Handout via REUTERS)

Ukraine's gross domestic product fell by 30.4% in 2022 - the largest annual fall in over 30 years - because of the war with Russia, Economy Minister Yulia Svyrydenko said on Thursday.

Svyrydenko, who is also first deputy prime minister, said in a statement that Ukraine's economy had suffered its largest losses since it won independence from the Soviet Union in 1991 although the fall was less than initially expected.

"The successes of Ukraine's defense forces on the front lines, the coordinated work of the government and businesses, the unbreakable spirit of the population and the speed of rebuilding damaged critical infrastructure units and also systemic financial support from international donors have allowed us to keep up the economic front and continue our movement towards victory," Svyrydenko said.

Continued pressure on business activity

The economy ministry said Russian missile attacks on Ukraine's energy infrastructure continued to put pressure on business activity and sentiment.

 Ukrainian military soldier sits before preparing to fire a mortar round, as Russia's attack on Ukraine continues, in region of Donetsk, Ukraine, December 31, 2022.  (credit: REUTERS/CLODAGH KILCOYNE) Ukrainian military soldier sits before preparing to fire a mortar round, as Russia's attack on Ukraine continues, in region of Donetsk, Ukraine, December 31, 2022. (credit: REUTERS/CLODAGH KILCOYNE)

"The successes of Ukraine's defense forces on the front lines, the coordinated work of the government and businesses, the unbreakable spirit of the population and the speed of rebuilding damaged critical infrastructure units and also systemic financial support from international donors have allowed us to keep up the economic front and continue our movement towards victory."

Economy Minister Yulia Svyrydenko 

Ukraine's GDP grew by 3.4% in 2021.