The economic and political environment of the media market in 2022, Ukraine

2022 in Ukraine marked the 8th year of the country's struggle against Russian aggression and the first year of full-scale war in the heart of Europe.

We fought to save our lives, and Ukraine's primary objective was to preserve its statehood which we achieved. However, the horrors of the full-scale war affected all fields of life. According to various estimates, Ukraine lost between 6 to 9 million permanent residents, women and children mainly, representing approximately 18-20% of the population. Currently, our estimate puts Ukraine's population at around 30 million (compared to 41 million in 2021). There were economic forecasts of a default, but the Ukrainian hryvnia held its ground, aided in part by allies. Nevertheless, the USD rose by about 25%, and the average exchange rate is now around 40 UAH per USD. 

During the autumn, in addition to civilian shells, the war expanded to target energy infrastructure, leading to a significant deficit of electricity. For the first time in its history, Ukraine had to purchase electricity instead of selling it. This also impacted Ukrainian businesses, but they quickly adapted by partially transitioning to generator power. Overall, despite continuous rocket attacks and direct threats, Ukrainians somehow adapted to the harsh reality, and the National Bank improved its GDP forecast for 2023, projecting growth for this year, as well as forecasts for consumer inflation rates.