NBU downgrades growth forecast for Ukrainian economy
28 May 2024 13:04
The National Bank has downgraded its forecast for Ukraine’s economic growth in 2024 from 3.6% to 3%. This was reported by the NBU press service, "Komersant Ukrainian" reports
The forecast downgrade is due to the consequences of Russia’s missile attacks, which led to significant damage to critical infrastructure and the energy sector.
“Due to the losses in the energy sector, the NBU has downgraded its economic growth forecast for this year from 3.6% to 3%,”
– the statement said.
It is noted that in the coming years, economic growth will accelerate to 4-5%.
“This will be facilitated by further adaptation of business and the population to new challenges, as well as significant budgetary incentives with the continued support of international partners,” the NBU said,
– the NBU added.
The NBU noted that despite the war, Ukraine’s economy continues to recover. Ukraine’s real GDP continued to grow in the first quarter of 2024. This was facilitated by the high adaptability of enterprises and the population to work in war conditions.
“The economy is also supported by significant budget spending on defence and social protection. At the same time, the government was restrained in its spending in the first quarter due to uncertainty over the flow of international aid. As a result, the recovery slowed down somewhat at the beginning of the year,”
– the report says.
However, since mid-March, assistance from international partners has intensified.
In particular:
- Ukraine received significant amounts of money from the EU, Canada, the IMF, and the World Bank;
- The EU adopted a long-term support programme for Ukraine for 2024-2027 worth €50 billion;
- The US approved a package of support for Ukraine for this year.
In addition, despite Russia’s attacks, the sea corridor through which Ukrainian businesses export food and metallurgical products continues to function.
