Since President Vladimir Putin launched his"special military operation" in February 2022, Ukraine's economy has undergone dramatic changes in the face of war and a shifting geopolitical landscape.
This month, Russia bombed the port of Odesa, and announced it would back out of its agreement to allow Ukraine exports safe passage in the Black Sea,Given how much exports have already fallen since before the war, July's events could make the trade deficit even worse, Brookings' senior fellow David Wessel told Insider.
Declines have been measured in tax and non-tax revenue, and income from capital transactions, which includes money from the National Bank of Ukraine, according to Brookings. Though still high at 12.8%, inflation has fallen faster than anticipated from its more than 26% peak last year, which gives officials reason to loosen policy. Price growth slowed for the sixth consecutive month in June, and local companies forecast better business conditions in the year ahead.“Consumer Price Indices,” National Bank of Ukraine, Brookings.