IMF Changes Growth Forecast for Ukraine's GDP.

IMF Improves Growth Forecast for Ukraine's GDP

According to new data, the International Monetary Fund predicts real GDP growth in Ukraine of 4% in 2024 and 2.5-3.5% in the following year. This information was announced in the Fund's statement following the review of the Effective Partnership Program for Ukraine.

The IMF report emphasizes that the Ukrainian economy continues to develop steadily, despite the prolonged war with Russia. Nevertheless, it is expected that GDP growth in 2024 will be at 4%, while in the following year it will slow down to 2.5-3.5%.

'As expected, inflation rose to 9.7% in October compared to last year, primarily due to rising costs for food and labor. However, inflation expectations remain stable,' the report states.

As of the end of October 2024, Ukraine's gross international reserves amounted to $36.6 billion due to external financial support. However, despite this, there are risks due to uncertainty regarding the duration and intensity of the war, including attacks on energy infrastructure.

The updated IMF forecasts have become more optimistic for Ukraine, considering the expected results for this year. In the previous report, the IMF projected GDP growth of 3.0% in 2024 and no more than 2.5% in 2025.

It was also reported that the additional budget for 2024 and the budget for 2025 meet the program parameters. However, it is expected that the budget deficit in 2025 will amount to 19% of GDP due to current expenditures on the war.