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Profits in wartime: Ukraine telecoms and farming prove resilient while real estate and hotels suffer most

Photo by Polina Rytova / Unsplash

Companies in Ukraine's agriculture and telecommunications sectors remained mostly profitable last year while the real estate, hotel and recreation sectors suffered amid the fighting, according to data released today by the country's State Statistics Service.

While brutal fighting destroyed many villages, severely damaged infrastructure and killed thousands, the basic need for food ensured that 78.4 percent of all agricultural companies remained profitable, according to the data. At the same time, the drive to stay in touch with loved ones amid mass migration kept 63.4 percent of all firms in the telecommunications and information sector remained profitable.

Meanwhile, real estate transactions fared second-worst among all activities, with only 54.3 percent of the companies in the sector registering a profit in 2022. Only the "arts, sports, entertainment and recreation" sector fared worse, with just 47.8% of firms booking a profit.

Ukraine's gross domestic product shrunk 29.1 percent last year as the Russian invasion cut off exports and prompted millions to flee the country. The National Bank of Ukraine, the country's central bank, predicts GDP will increase 2.9% this year.

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