Why did the IMF improve its economic forecast, and what are the key areas for Ukraine’s GDP growth?

An IMF team has improved its economic growth forecast for Ukraine this year from 3% to 4%, as the Ukrainian economy has performed better than expected in the previous two quarters, IMF spokeswoman Julia Kozack said. Ukraine and the IMF have agreed on several strategies and reforms to support macroeconomic stability during the war. However, the outlook remains uncertain, with the Russian war still causing significant losses.

Kozack also said that the IMF’s executive board will meet to review the results of the sixth review of Ukraine’s EFF program and decide whether to allocate another tranche of up to $1.1B in the coming weeks. A favorable decision would increase Ukraine’s total amount receiving under the program to $9.8B. In 2025, Ukraine could receive another $2.7B in several tranches under the agreement.

Meanwhile, Finance Minister Serhiy Marchenko believes that innovation, the market for critical resources, and the defense-industrial complex are vital areas that will contribute to Ukraine’s economic growth and European integration.