Ukraine suffered the sharpest economic decline in over 30 years in 2022. The main reason for this is none other than the War with Russia. The even worse scenario is that Ukraine will find it very difficult to carry out economic reconstruction because this is very critical.

Foreign aid and the unbreakable spirit are the main things that Ukraine currently has, especially when the economy minister released data showing that there was a 30.4^ decrease in Gross Domestic Product last year experienced by Ukraine.

Economic analysts also say that risks and uncertainties remain high, especially if Russia continues to make critical attacks on the infrastructure in Ukraine. So things that seem central can cause economic difficulties for the Ukrainian public.

Economy Minister Yulia Svyrydenko said that the GDP decline is the biggest since Ukraine achieved independence from the Soviet Union in 1991. But Ukraine's enthusiasm to restore its economy will remain strong.

Ukraine Suffers Its Biggest Economic Fall in Independent Era Due to War

"In 2022, Ukraine's economy will be forced to experience the largest damage losses in the entire history of independence. This is because inflicted with the Russian Federation, and the successes of Ukraine's defence forces on the front line will be an important thing,"

"The coordinated work of the government and businesses, plus the unbreakable spirit of the population and the speed of rebuilding damaged critical infrastructure units, and the systemic financial supports that allow us to keep the economic front," said the minister.

The War has caused widespread death and destruction, which uprooted millions of Ukraine to difficulties in the economic sector. The statement submitted by Svyrydenko is also proof that the government is panicking about the conditions they are facing.

The economic downfall was less than initially expected, but Ukraine has summed up 35% in the export sector compared to the data of 2021. Meanwhile, foreign aid will help Ukraine achieve financial stability, and this will also speed up reconstruction.

The prospect of a collapse in the Ukrainian economy is also estimated to require around 350 billion dollars. Meanwhile, the Ukrainian economy has proved more resilient.

Additionally, the transition from a peacetime economy to a wartime economy has also been carried out quite well by the central bank. Notably, the country's financial infrastructure also remained intact

This then allows people and businesses to continue making payments so that the government can collect taxes and raises money to support its defence. Hence, foreign aid from the west has played a crucial role here.

Ukraine's Losses in this War at 50% of GDP, Key to Reconstruction Success for Ukraine Now in Digitalization and Transparency

Regarding the central role played by foreign aid, Ukraine needs it because it has lost around 50% of its total GDP. As a result of the War with Russia, economic reconstruction is central, but it needs other support and financial aid continues to be relied upon.

The intended support is digitalization and transparency, and these are the dimensions need to be utilized so that the defence, financial and non-profit sectors can see genuine support without having to destroy the local agenda again in this critical situation.

Moreover, it has just been announced by the governor of the national bank of Ukraine that they have lost more than 5- per cent of the GDP due to this War. Sooner or later, the actions taken and financial decisions will be necessary for infrastructure and building.

Until the end of 2022, the Ukrainian economy has been forced to experience a significant decline. More than 30 per cent of the fall was shared, and this then affected the country's currency as well. So the official sector holds the key to reconstruction.