The metallurgical industry is the most affected Ukrainian industry as a result of the full-scale war on the territory of the country, having lost more than 60% of its capitalization. These losses have become the main factor in the reduction of the capital of this industry, as reported by the World Bank report.
As a result of the war, the Ukrainian economy suffered significant losses: 20% of businesses were directly destroyed, while 70% lost their income. The bank's report is based on a survey of entrepreneurs and an analysis of open sources.
It is noted that the incomes of 70% of surveyed entrepreneurs decreased as a result of the war, and on average, the income of enterprises decreased by half compared to 2021. According to the regional distribution, the greatest losses were felt by the eastern regions, where incomes decreased by three times. The southern regions recorded an average drop of 60%, and the western regions - about 40%.
According to the report, approximately 20% of businesses were destroyed by the fighting. As for destruction, the eastern region was the most affected, where more than 47% of enterprises became the object of destruction. In the southern regions, this figure is 29%.
The World Bank also identified other challenges facing Ukrainian businesses as a result of the hostilities, including energy supply problems, logistical disruptions, falling demand, labor shortages due to mobilization and migration abroad, and a lack of finance.
The World Bank predicts that Ukraine's economy may experience a slight recovery after a decline of more than 30% in 2022, but GDP growth is forecast at 5% in 2023, due to significant government spending.
The long-term deficit of the state budget of Ukraine has also become a subject of attention. The deficit for 2023 amounted to UAH 1.33 trillion, which is UAH 418.9 billion more than in 2022. The increase in the deficit was driven by an increase in spending that came from record spending levels in December 2023.
