The Ukrainian economy is recovering faster than the NBU forecast.

The absence of power outages and the further improvement of supply routes, including through the western borders, all have contributed to the Ukrainian economy’s growth, the National Bank of Ukraine reports.

Ukrainians began to spend more money on goods and services. This was influenced by the improvement of consumer sentiment against the backdrop of economic recovery and a specific improvement in the financial condition of households.

“Significant budget expenditures also play an important role. Due to large amounts of international aid, the government can finance the social sphere and the reconstruction of damaged infrastructure, and thanks to taxes, it can provide for the army,” the regulator notes.

Given the better-than-expected situation in the year’s first half, the NBU revised its forecast for real GDP growth in 2023 from 2% to 2.9%. In the following years, economic growth will accelerate to 3.5-6.8%.