Ukraine has entered the category of countries with higher than average incomes - World Bank
Kyiv • UNN
According to the World Bank, Ukraine entered the upper-middle-income category for the first time in 2023, thanks to economic growth of 5.3% and a population decline of more than 15% following the Russian invasion.
The World Bank has released data showing that Ukraine for the first time entered the category of countries with higher-than-average incomes due to economic growth in 2023. This is reported by the press service of the bank, UNN writes.
Ukraine's upward reclassification was the result of a recovery in economic growth in 2023 (real GDP grew by 5.3% after falling by 28.8% in 2022), coupled with a continued decline in population, which has fallen by more than 15% since the beginning of the Russian invasion
According to the World Bank, rising prices for local goods and services contributed to an 18.5% increase in nominal domestic product per capita.
Despite the heavy losses to Ukraine's economy due to the Russian invasion, real economic growth in 2023 was largely driven by the revitalized construction industry, which grew by 24.6%. This reflects a significant increase in investment, which by 52.9% supported the reconstruction efforts in Ukraine after the ongoing destruction.
To recap
Amid massive Russian strikes, the World Bank will provide Ukraine with more than $100 million to implement housing reconstruction projects and support the energy sector.