The IMF explained why they gave a pessimistic forecast for Ukraine's economic growth.

IMF Forecast: Destruction of Ukraine's energy infrastructure will affect its economic growth

The latest IMF forecast regarding Ukraine's economic growth in 2024-2025 was significantly lowered, primarily due to the destruction of Ukraine's energy infrastructure by Russia, as well as uncertainty regarding the further development of the war.

This was stated in response to a question from Ukrinform by the head of the IMF's European Department, Alfred Kammer.

"Economic indicators for this year have been seriously affected by the bombing of Ukraine's energy infrastructure, and this worsens growth, as well as forecasts (for the next year – ed.)", the Fund's representative noted during a speech at the Annual Meetings of the IMF and the World Bank in Washington.

In addition, according to him, the ongoing war, initiated by Russia, maintains uncertainty that affects aggregate demand in the country.

"If you look at our forecasts for 2025, we have also lowered them, and this indicates expectations that Russia's war in Ukraine will continue. We assumed it would end earlier, but that did not happen," Kammer explained.

He added that this, again, creates additional costs for the Ukrainian economy.

The IMF representative highly appreciated the work of the economic team in Ukraine in terms of supporting macro-stability, as well as maintaining growth and business operations in the current environment. At the same Time, he noted the efforts of the Ukrainian authorities to protect vulnerable population groups and create conditions for the country's recovery, as well as joining the EU in the further perspective.