During the war, many of the industries was damaged or destroyed and the remaining industries are suffering from demand and logistics. Also, power cut in the October-December period was included to the problems of the industry. In 2022, Ukraine's GDP will temporarily decrease by 30.4%, while the State Statistics Service is not currently publishing this data, so it is not known how much industrial production has decreased. At the same time, it is clear that the decline in industrial production in Ukraine last year was at least 30-40%, which threatened the post-war deindustrialization of the country.
The Ukrainian authorities did not have a systemic industrial policy both in the pre-war period and during the war. For example, at the very beginning of the war, the authorities abolished VAT and taxes on all imported goods, but this decision was abolished on July 1,2022, By contrast, the introduction of a 2% single tax on turnover, which is scheduled to be canceled by the middle of this year, hasn't had much impact for large backbone companies.
The displacement of enterprises can be considered as a separate aspect of industrial policy in wartime conditions. By the end of November 2022, more than 770 businesses have moved their operations to safer areas, and more than 600 of them are already operating in a new location.
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