The World Bank has improved its economic forecast for Ukraine.

The World Bank forecasts Ukraine’s GDP to grow by 3.5% in 2023 and 4% in 2024, which is 1.5 and 0.5 percentage points higher than its June estimates, according to the updated economic forecast for developing countries of Europe and Central Asia.

The bank named factors that led them to improve their prognosis: A stable electricity supply, an increase in government spending, large foreign aid, a higher-than-expected harvest, and an increase in consumer and business confidence all contributed to a gradual increase in activity in the first half of this year after a sharp decline a year ago.

The growth forecast for Ukraine’s economy in 2026 is projected at 6.5%. In general, the bank states that the economic conditions in Ukraine remain challenging due to escalating security risks, additional damage to infrastructure, renewed pressure on energy prices, and limited capacity of grain transportation routes to international markets.