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Ukraine observes falling inflation for the second month in a row, and the economic expectations of investors and the government are improving.

The EU predicts Ukraine's GDP will grow this year.

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Consumer prices in Ukraine decreased by 1.4% in August 2023, which led inflation in Ukraine in annual terms to fall to 8.6%, the State Statistics Service reported. In July, inflation was 11.3%, and in June it was 12.8%.

According to an updated forecast from investment company Dragon Capital, by the end of the year Ukraine’s GDP growth will reach 4.5%, the hryvnia exchange rate will not change significantly, and inflation will slow to 9%.

Meanwhile, the Ministry of Economy believes the inflation rate will continue to slow down in the coming years.

“The Ministry of Economy expects GDP growth in 2023 to be closer to 4%. This is a more optimistic forecast than the NBU, which expects growth at 2.9% of GDP,” said Economy Minister Yulia Svyridenko at the Yalta European Strategy Forum.

Also, according to her, consumer inflation will slow down to 10.6% this year, and the unemployment rate will decrease to 19%. The Ukrainian capital’s economy should grow by 0.5-1% this year.

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