Approximately 30% of relocated businesses belong to the agri-food sector. Over 80% of businesses have remained in their respective regions despite significant changes in Ukraine’s economic geography.
These findings are based on a study conducted by the Center for Economic Recovery (CEV) titled “The Impact of War on Ukraine’s Economy: Industry, Regional, and Social Aspects.”
“The war has significantly altered Ukraine’s economic geography. Frontline regions have experienced a loss of 30-40% of their GDP. In central and western regions, GDP has decreased by 10-30%. However, in Zakarpattia, Ivano-Frankivsk, and Kirovohrad Oblasts, population growth has led to positive economic changes,” states the CEV in their Facebook announcement.
According to the research, a total of 790 businesses were relocated in Ukraine, with 623 of them having already resumed operations in their new locations. More than 650 businesses that had planned to relocate their production facilities decided against it due to the process of de-occupation of the territories where they are currently situated. In terms of regional breakdown, the largest percentage of businesses moved to Lviv Oblast (24%), followed by Zakarpattia (14.5%), Chernivtsi (9.8%), Ivano-Frankivsk (8.3%), Khmelnytskyi (7.3%), and Ternopil (6.3%).
In terms of industry breakdown, the highest percentage of relocated businesses were in marketing and consulting (41.6% in Ukraine, 16.6% abroad), mechanical engineering (30.8%), wholesale trade (25.5%).
“The agricultural sector accounted for only 14.3% of relocated businesses, retail trade – 15.7%, IT – 19.4% (including 2.8% abroad), and food production – 15.8%,” as stated in the study.
Source: AgroPortal
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