Minister of Finance: Ukraine’s Economy Significantly Improved Compared to Last Year

Minister of Finance of Ukraine, Serhii Marchenko, has said Ukraine's current economic situation is significantly improved compared to a year ago. He expressed this in his

Writing in his column for "Economic Pravda," published on Friday, May 19, he said during discussions with international partners, he often receives words of surprise and admiration.

They wonder how the Ukrainian government managed to maintain control over the financial and economic situation while financing a military campaign against Russia.

Marchenko highlights the heroism of Ukrainian entrepreneurs who continued working and paying taxes despite unprecedented challenges and uncertainty.

He acknowledges that every industry in Ukraine has suffered losses due to Russian aggression, including "disruptions in supply chains, logistical problems, fuel and electricity shortages, and regular shelling by the Russian Federation".

However, these difficulties did not halt the efforts of Ukrainian entrepreneurs.

Marchenko states that during the initial month of the war, businesses in Ukraine were virtually paralyzed.

However, at present, approximately 90% of entrepreneurs have successfully resumed their operations.

The minister pays attention to the importance of business resumption, as taxes and domestic borrowing are the primary sources of financing for the army. Paying taxes is likened to fuel that drives Ukraine's resistance against Russia.

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Even in the temporarily occupied territories, entrepreneurs have contributed to the Ukrainian budget by paying taxes, despite oppression by the occupation authorities.

 From the start of the war until June 2022, 2.3 million registered taxpayers in the conflict zones or temporarily occupied territories paid a total of Hr. 278.1 billion in taxes, fees, and payments (Kharkiv, Kherson, Zaporizhzhia regions).

Furthermore, Ukrainian entrepreneurs paid taxes in advance, contributing an additional Hr. 32.9 billion for the period from March to June 2022. This immediate financial support proved crucial at that critical moment, as explained by the Minister of Finance.

Marchenko points out that despite a 29.1% decline in the economy last year, tax revenues to the state budget's general fund increased by 2% compared to 2021, amounting to Hr. 627.7 billion.

He attributes this accomplishment to the incredible efforts of the business community.

"Today, we are in a much better economic situation than we were a year ago. Inflation is declining at a faster pace than originally forecasted, from 26.6% in December 2022 to 17.9% in April 2023.

We are refraining from monetary financing in 2023, and the GDP growth forecast has been increased to 3.2%," emphasized the head of the Ministry of Finance of Ukraine.