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Economy Ministry estimates fall in GDP in Feb at 26% against 32% in Jan

KYIV. March 8 (Interfax-Ukraine) – The fall in GDP in February 2023 is 26% (±2%), which is better than in January – 32% (±2%), the press service of the Ministry of Economy of Ukraine reports.

“In February 2023, economic activity gradually recovered, given a significant reduction in electricity shortages and a reduction in the duration of outages due to the resumption of work of all available types of generation in the energy system from mid-February. The “energy war” won by Ukraine added optimism to businesses, which improved their mood in the future and stepped up activity,” First Deputy Prime Minister – Minister of Economy of Ukraine Yulia Svyrydenko said.

According to her, in general, the economic front is holding up: the economy continues to function, adapt and recover.

In particular, in February, compared to January of this year, the situation in industrial production somewhat improved due to the reduction in the pressure of such a factor as the shortage of electricity, given the launch of nine nuclear units.

It is noted that this could be affected by a decrease in rocket attacks on the territory of Ukraine and electric power facilities and the leveling of their negative impact by greater adaptability of manufacturers.

According to the Ministry of Economy, the situation is improving in many sectors of the economy. Thus, in the transport sector, there has been a gradual resumption of activity in all key modes of transport, except for air travel, the activities of which are not carried out because of military operations.

The report indicates that the situation in livestock production has also improved slightly, gradually adapting to difficult operating conditions, in particular in the regions that were relatively less affected by the war and where farmers from the frontline territories have relocated, expectations of business activity in the trade sector, which is sensitive to changes in demand., have significantly improved.

According to the agency, there is a gradual improvement in the situation in the construction sector in the de-occupied territories due to the intensification of construction, including the restoration of destroyed or damaged residential, industrial, and infrastructure facilities.