IMF notes three of Ukraine's achievements in economy stabilisation
In preparation for the second revision of The Extended Fund Facility (EFF), the International Monetary Fund noted at least three important achievements of Ukraine related to the stabilisation of the economy.
Source: Kristalina Georgieva, the managing director of the EFF, at a press conference in Marrakech, as reported by Ukrinform
Quote: "In this [second] revision, we recorded three very important achievements," the head of the Fund said.
The first achievement, according to Georgieva, is the continuation of economic growth.
"Now we predict growth to about 3%. We had a range of 1% to 3%, and we are leaning towards the highest end of this range," Georgieva explained.
In addition, the inflation rate in Ukraine was brought to single digits, which can be hard to achieve even in peacetime. The head of the IMF stressed that the level of inflation in Ukraine was high and decreased due to "thoughtful policy".
The third accomplishment is that Ukraine has solid international reserves. This allowed the National Bank of Ukraine to begin implementing measures for the controlled flexibility of the exchange rate.
Georgieva recalled the need for noticeable progress on the Ukrainian side in controlling costs. In particular, Ukraine has already adopted a law providing for the restoration of declarations.
The head of the Fund stressed that the IMF is working with the Ukrainian authorities "on all aspects" of the EFF extended funding programme. The organisation also resumed the permanent work of his office in Kyiv, and this "allows it to interact with the Ukrainian authorities on a daily basis."
Background:
- The IMF has included Ukraine in its updated macroeconomic forecast. The fund expects GDP to grow by 2% in 2023 and accelerate to 3.2% in 2024 after a 29.1% drop last year. The Extended Fund Facility (EFF) provides for this.
- The IMF predicts the economy will grow by 2.2% in 2023 in Russia and slow down to 1.1% in 2024.
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