CURRENT STATE AND WAYS OF RECOVERY OF UKRAINE'S ECONOMY

Abstract

The article reviews the main consequences of a full-scale military invasion and the impact on the main results of Ukrainian industry in the short and long term. It has been established that the industries that provide the basic needs of the population (produce food, clothing, or shoes) are best preserved and/or restored. It has been proven that the full-scale military aggression emphasized the weak points of the Ukrainian economy. It was established that the first few months of the full-scale invasion of Ukraine were accompanied by a fuel crisis, which set the government and business leaders the task of setting up fuel logistics from scratch. This circumstance also reduced the pace of recovery of the country's economy. Based on the processing of statistical data, it is proven that military actions led to a 32% drop in Ukraine's GDP in 2022, caused the devaluation of the hryvnia, and caused a decline in industrial production and consumer sentiment. The deterioration of the situation in the economy was also contributed by the shortage of electricity. The national electricity transmission operator was forced to apply restrictions on electricity consumption in the country. After each successive strike, the situation worsened, and after the missile strikes in November, there was a short but total blackout. It was the power outages that worsened business sentiment and led to revisions in macroeconomic forecasts. It was established that in several industries (production of building materials, metallurgy and metalworking, chemical industry and mechanical engineering) a critical drop in production is recorded. Even in the woodworking industry, which is mainly concentrated in the west and north of the country, only 35% of enterprises are operating at almost full capacity. The data confirm that entire industries have quickly become hostages of war, with supply chains disrupted, seaborne export routes blocked, and demand reduced. It has been proven that to successfully restore the country's economy, restore export opportunities and withstand competition on world markets, to stand up in the struggle for sales markets for its products, Ukraine needs to: increase the efficiency of the economy, which is based on the development of market relations; comprehensively increase the export orientation of foreign economic activity; ensure the transition to settlements with foreign partners in freely convertible currency; to improve the concept of development of export-import operations.