Page 41 - UKRRptJan22

Ukrainians abroad stimulate the economies of other countries. Spending by Ukrainians abroad in 2022 will reach $2B per month, which is three times more than the previous year, the head of the National Bank, Andriy Pishnyi, said. According to Pishnyi, because of spending and employment of Ukrainian citizens abroad, the European economy enjoys a positive fiscal effect and a long-term positive impact. Due to contributions from Ukrainian migrants, GDP in, for example, Estonia, Poland, and the Czech Republic in 2026 will be 2.2% - 2.3% higher than models without migration. Since the beginning of the war, Ukrainians in Poland have paid 10B zlotys ($2.4B) in taxes, which significantly exceeds the amount of aid provided, said the head of NBU. The bank considers fears and pessimistic forecasts regarding the negative impact of the multi-million person flow of migrants from Ukraine unfounded, as they do not consider the beneficial financial impact of the Ukrainian people.
The amount of cash in the hands of Ukrainians has increased by $10B.
According to the National Bank, during March-October 2022, the amount of foreign currency outside the banking system increased by $8.1B, and according to the results of the first 10 months of 2022, by $9.9B. Over the same period last year, the increase in the amount of liquid currency was much smaller. In the first 10 months of 2021, it amounted to only $3.9B, and for the whole of last year, only $5.1B. The National Bank attributes this trend primarily to the cash possessed by Ukrainians who have gone abroad. At the same time, the physical volume of not only foreign currency but also hryvnia in circulation has increased by 10.4% since the beginning of the year. The sharp increase in cash outside banks this year has come during periods of significant uncertainty related to Russia's full-scale invasion of Ukraine in February and energy terrorism in the fall.
41 UKRAINE Country Report January 2023 www.intellinews.com