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The IMF has worsened its GDP growth and inflation forecasts for Ukraine.

World Bank: Almost a third of Ukrainians live in poverty.

A woman walks with a bicycle next to a damaged building in Volnovakha

The IMF predicts the growth of Ukraine’s real GDP at 3% in 2024 with inflation at 9%, the National Bank reported following the IMF mission. The IMF emphasized that Ukrainian fiscal policy, high adaptability shown by the population and business community, and stable external financing all helped to support macroeconomic and financial stability. Real GDP grew by 6.5% year-on-year in the first quarter, and international reserves were sufficient – $42.3B as of September 1.

However, economic growth is forecast to slow in the second half of the year because of Russian attacks on energy infrastructure, the war’s impact on the labor market, and declining expectations for business activity.

The IMF had expected GDP growth this year in the range of 2.5% to 3.5%, with inflation at 8%. The GDP growth forecast for 2025 is 2.5-3.5%.

 

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