JRL NEWSWATCH: “Bullets and balance sheets: Ukraine’s economy seems to be growing again: Battlefield success begets economic success” – The Economist

File Image of Ukrainian Currency, adapted from file at usaid.gov

“… [Ukraine’s] economy has adapted to war — and seems to be growing again. … Odessa’s ports. … are now operating. … A grain deal … allows Ukraine to export agricultural products. … In August just as many people entered Ukraine from the [EU] as went the other way. The share of firms working at more than half capacity reached around 80% in September, up from 58% in May. … reflect[ing] … growing security and official support. A government programme has helped 745 businesses to relocate …. [A]dept policymaking has helped the country … avoid .. financial crisis. When the war began, the government’s budget deficit leapt …. Despite the central bank’s best efforts, in July it had … to devalue the currency. Another devaluation [reportedly] now seems likely given the gap between the cash exchange rate and the official one …. Yet these problems have proven … navigable …. Banks entered the war well capitalised, thanks to consolidation and a clean-up …. Digital skills honed in the covid-19 pandemic have kept their doors open. The independence of the central bank … has helped prevent panic. … International donors have stepped in with much needed cash. ..”

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