PM: Enterprises, contributing over 50% of GDP, located in combat zone

"More than 30% of the companies, which generated more than 50% of GDP, are located in combat zone. Now we lose between 35% and 50% of GDP during hostilities. This is a blow to the economy. Nevertheless, we have enough reserves," Prime Minister of Ukraine Denys Shmyhal said in an interview with NV, Ukrinform reports.

He added that March was rather stable for Ukrainian economy, despite hostilities. All payments in support of the army and all social payments were made. April will be more difficult than March, Shmyhal warned.

"The budget is overfulfilled in the first quarter. There was no war in January-February and we were well ahead. In the first quarter, we had 121% of the plan performance. In March, tax revenues were also overfulfilled as many large companies paid taxes in advance and state-owned companies and banks paid dividends earlier than expected. Therefore, the tax plan is overfulfilled – 134%. In March, the budget was fulfilled by 95%," he said.

According to him, the receipts from the customs were fulfilled only by 20% due to the fact that the turnover at the customs dropped.

"We exempted the entire business from customs duties. We have open customs, the humanitarian aid is cleared without extra paperwork, just one page. All products are imported without any restrictions and without any barriers. We pay for this by reducing budget revenues, but it is very important for us to saturate the country with basic necessities and products, so we have liberalized customs. In the future, we will adjust this policy depending on how events unfold," the Head of Government explained.

Shmyhal stressed that the economy of wartime and martial law period required tighter governance as conditions are constantly changing.

ol