NBU improves GDP growth forecast from 3% to 3.7% in 2024

The National Bank has improved the GDP growth forecast from 3% to 3.7% in 2024.

The NBU has said this in a statement, the Ukrainian News agency reports.

"Economic growth in the first half of the year continued, although it slowed down in recent months due to Russia's large-scale attacks on energy infrastructure facilities. However, business partially adapted to the constant power outages. Economic activity was also supported by the stable operation of the sea corridor. Despite the shortage of electricity and harvest smaller compared to the previous year, the National Bank of Ukraine even slightly improved the economic growth forecast for this year - up to 3.7%," the message reads.

This is due to the better results of the 1st quarter and the expected expansion of budget incentives, as well as the development of distributed generation, including with the support of large-scale lending programs.

The gradual normalization of the economy's functioning conditions, the maintenance of a soft fiscal policy, together with the development of export routes and the revival of external demand will contribute to the acceleration of real GDP growth rates to 4.1% and 4.8% in 2025 and 2026.

As the Ukrainian News agency earlier reported, in April of this year, the National Bank worsened the GDP growth forecast from 3.6% to 3% in 2024.

In 2023, according to operational data, the real gross domestic product increased by 5.3% compared to 2022 (in constant 2021 prices) to UAH 6,537.825 billion (in actual prices).