“The International Monetary Fund marginally improved the forecast of real GDP growth of Ukraine to 4% in 2024, and to 2.5-3.5% in the following year.”, — write: www.epravda.com.ua
The International Monetary Fund marginally improved the forecast of real GDP growth of Ukraine to 4% in 2024, and to 2.5-3.5% in the following year.
About this it is said in the Fund’s message on the results of the sixth review of the EFF program for Ukraine.
It is noted that the economy continues to demonstrate resilience despite the devastating challenges associated with Russia’s war in Ukraine, which has been going on for 1,000 days. Real GDP growth is expected to reach 4% in 2024, but is forecast to slow to 2.5-3.5% in 2025.
“As expected, inflation rose to 9.7 percent year-on-year in October, mainly due to higher food and labor costs, but inflation expectations remain stable.
At the end of October 2024, gross international reserves stood at US$36.6 billion, thanks to the continuation of large external official support. However, the risks remain extremely high given the uncertainty about the intensity and duration of the war, including due to ongoing attacks on energy infrastructure,” the statement said.
The updated indicators are more optimistic for Ukraine, in particular, based on the expected results of this year. Thus, in the latest World Economic Outlook (WEO) report, the Fund predicted maximum growth for Ukraine in 2024 at the level of 3.0%, and in 2025 – no higher than 2.5%.
The IMF also reported that the additional budget for 2024 and the budget for 2025 correspond to the program parameters. The budget deficit is expected to reach 19% of GDP in 2025, reflecting current spending needs due to the war.
We will remind:
Ukraine and the IMF Agreed at the expert level on the sixth review of the program within the framework of the EFF Enhanced Financing Mechanism. This will allow to attract another 1.1 billion dollars to the state budget.