The National Bank forecasts Ukraine’s economy to grow by 3.7% in 2024
2 August 2024 13:15
The National Bank of Ukraine has improved its economic growth forecast for 2024 to 3.7%. This is stated in the NBU’s inflation report for July, according to "Komersant Ukrainian"
The forecast was improved despite the ongoing impact of the war and significant damage to the energy infrastructure.
Thus, according to the NBU, economic recovery continued in the first half of the year, although it slowed down due to large-scale Russian attacks on energy facilities. However, businesses have partially adapted to the persistent power outages, and the stable operation of the sea corridor has provided significant support to economic activity.
The improved forecast is driven by better results in the first quarter, the expected expansion of budgetary incentives, and the development of distributed power generation, in particular with the support of large-scale loan programmes.
The NBU also forecasts that real GDP growth will accelerate to 4-5% in 2025-2026. This will be possible due to the gradual normalisation of economic conditions, the maintenance of a loose fiscal policy, the development of export routes, and a revival in external demand.
At the same time, inflation in Ukraine is accelerating: NBU forecasts 8.5% by the end of the year.
More news in the Kommersant Ukrainian telegram channel – https://t.me/komersant_ukrainskyi.
