World Bank: One in five companies in Ukraine has suffered damage
A total of 20% of Ukrainian businesses have reported direct damage, while 70% have suffered financial losses.
Source: a World Bank report
Details: The World Bank's report is based on a survey of entrepreneurs and an analysis of open sources.
It says that 70% of respondents experienced a drop in income. On average, businesses’ income has halved compared to 2021.
Regionally, eastern oblasts have suffered the most, with a threefold drop in income, while the country's south has been less affected, with an average drop of 60%, while western oblasts have seen a drop of about 40%.
Approximately 20% of businesses have suffered damage as a result of the hostilities. As with income, the eastern part of the country has suffered the most damage, with approximately 47% of businesses experiencing damage, while the south has been less affected, with 29%.
Metallurgy is the most affected industry, having lost more than 60% of its capitalisation.
The World Bank also cites a list of other problems faced by Ukrainian businesses, in addition to the direct damage caused by the war:
- problems with energy supply after Russian shelling;
- disruption of logistics due to hostilities and the blockade;
- declining demand;
- shortage of workers due to mobilisation and migration abroad;
- lack of funds.
The World Bank predicts a slight recovery for the Ukrainian economy after a decline of more than 30% in 2022. The 5% growth in GDP in 2023 is attributed to significant public spending.
Reminder:
The Ministry of Economy forecasts GDP growth of 4.6% and investment growth of 29.6% in 2024.
In October 2023, the World Bank forecast GDP growth of 4% for Ukraine.
The forecast for Ukraine's economic growth in 2025 remains at 6.5%.
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