World Bank: The Ukrainian economy has reached a turning point.

The World Bank offered its assessment in its regional Economic Review, as concerns about the timing and volume of future aid payments to Ukraine are growing. The World Bank predicts that Ukraine’s GDP growth will slow to 3.2% in 2024, reflecting lower harvests and persistent labor shortages.

The bank notes that Ukraine’s budget for 2024 includes $37.3B in external financing, the timely receipt of which will be crucial for authorities to maintain macroeconomic stability and finance critical expenditures.

Therefore, according to the WB, the key priorities are to restore livelihoods by integrating the displaced population and veterans into labor markets, ensuring uninterrupted provision of social services, and supporting households in recovery.

The WB also predicts an increase in inflation in 2024 to 9.5% from 5.1% last year. Public debt is expected to rise from 86.8% of GDP to 96.3% of GDP, and net foreign direct investment is expected to fall to 0.8% of GDP from 2.4% of GDP.