Ukraine minister: GDP contraction of 39% expected in 2022 vs earlier forecast of 35%

Ukrainian economy minister Yulia Svyrydenko said Russia’s destruction of civilian infrastructure in recent weeks was expected to result in a 39% contraction of gross domestic product in 2022, down from an earlier forecast of a 35% drop. ​ Svyrydenko, in Washington to meet with senior U.S. officials, told reporters on Wednesday the Ukrainian government would continue to need foreign budgetary assistance, but was also taking steps to reduce government costs by cutting staff and privatizing smaller state-owned enterprises. Ukraine’s President Volodymyr Zelenskiy last month said his country would need $38 billion to cover next year’s expected budget shortfalls, and an initial $17 billion to begin work on the most urgent infrastructure repairs, including roads, bridges and schools.