Ukraine's GDP might drop by 30% in 2022 - Dragon Capital CEO

KYIV. May 17 (Interfax-Ukraine) - Ukraine's GDP will drop by 30% in 2022 if the current situation persists and by 22-25% if a truce is agreed, Dragon Capital CEO Tomas Fiala said.

Speaking at the Global Outlook: Economic Frontline conference organized by the European Business Association on Tuesday, Fiala said that, if the conflict continues throughout the year and no truce is concluded, this would deal a heavy blow to the Ukrainian economy, causing it to plunge by 30%.

If there is a truce, Fiala said Ukraine's GDP could go down by 22-25% in 2022.

Speaking of the Ukrainian hryvnia's expected devaluation, Fiala said the national currency might lose up to 20% of its value in 2022.

Dragon Capital does not expect to return its investments this year, Fiala said. The company also plans to raise the wages to its employees soon, as they have earlier been reduced over the events in Ukraine, he said.

Most of the businesses in Ukraine, even in its eastern part, keep operating, the degree to which they have resumed their operations ranging from 30%-40% to about 70% of the pre-crisis levels, Fiala said.