Growth of Ukraine's economy in 2023 to accelerate to almost 5%

Ukraine’s economy is demonstrating stability during the current year, with its GDP forecast to grow to reach 4.7% after falling by 29.1% last year.

Source: Serhii Marchenko, Ukraine’s Finance Minister, at a meeting with the G7 financial bloc, as reported by the Ministry of Finance press service

Quote: "Inflation is declining faster than expected, down to 7.1% in September 2023 from 26.6% in 2022. Domestic debt has exceeded our plan and has already reached over US$11 billion since the beginning of the year. Thanks to our partners, international financial support is rhythmic and predictable, totalling US$33.8 billion in 2023," he said.

The topic of the discussion, which was attended by finance ministers and heads of central banks of the G7 member states, the leadership of the IMF, the World Bank and the European Commission, was Ukraine’s financial system, the state of implementation of structural reforms and cooperation with international financial organisations, as well as the EU in the context of meeting Ukraine’s budget needs in 2024.

Marchenko stressed that Ukraine’s government is committed to implementing the reforms defined in cooperation with international partners.

Marchenko also added that the 2024 state budget provides for the accumulation of maximum resources in the security and defence sector, with expenditures at the level of the current year, as well as the creation of conditions for the development of the domestic defence industry.

At the same time, an increase in spending on social protection and humanitarian assistance is envisaged, since support for Ukrainians is an important priority for the Ukrainian government, and therefore the state budget deficit is projected to be US$42.9 billion.

The head of the ministry noted that Ukraine's fulfilment of the conditions defined in cooperation with the IMF will allow it to receive US$5.4 billion under the EFF programme next year.

Background: 

• The International Monetary Fund expects Ukraine's GDP to grow by 2% this year, while in its April forecast the Fund expected the Ukrainian economy to contract by 3%

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