Ukraine’s GDP fell by 31.4% in the fourth quarter of 2022, compared to a 30.8% drop in the third quarter, according to Derzhstat, cited by the Kyiv Independent.

On March 6, the Ministry of Economy revised its forecast for 2023, estimating that Ukraine’s economy will grow by only 1% compared to the initial forecast of 3.2%.

The deterioration of the economic situation in Ukraine can be explained by Russia’s ongoing war against the country, which shows no signs of ending in the near future.

Allies have pledged to support Ukraine in its post-war reconstruction, including Japan, which on February 1 pledged $170 million for emergency recovery projects, including rebuilding critical infrastructure damaged or destroyed during the Russian invasion.

The American investment company JP Morgan also promised to promote the attraction of private capital for the post-war construction of Ukraine, the Ministry of Economy reported on March 9.

Ukrainian agriculture suffered huge blows that affected the entire economy.

Agriculture Minister Mykola Solskyi told the Kyiv Independent on February 27 that the indirect damage to the industry, which includes losses to farmers and supply chains, amounted to $34.25 billion. Direct damage to the Ukrainian agricultural industry is 6.6 billion dollars.