S&P Global Ratings predicts 40% decline of Ukrainian economy in 2022

S&P Global Ratings expects a 40% decline in Ukrainian economy in 2022, the agency said in a statement, Report informs, citing RBC-Ukraine.

The agency noted that the first six months of the war caused heavy damage to the Ukrainian economy and society. About one-fifth of Ukraine's production capacity and most of its seaports are currently located in areas occupied or blocked by the Russian military.

There is a large degree of uncertainty as to how the conflict may develop, the agency said, noting that it currently sees limited prospects for its resolution.

S&P estimates that Ukraine’s real gross domestic product will contract by 40% this year due to collapsing exports, consumption and investment.

Given the substantial damage to physical and human capital, Ukraine's medium-term growth prospects are uncertain and depend on the restoration of some level of territorial integrity and access to the Black Sea, along with significant recovery efforts, S&P analysts said.