2022-09-28T16:09:00+03:00 Economy 2023-11-15T04:57:13+02:00

Ukrainian news

Ukrainian news

EBRD Worsens Ukraine's Economic Growth Forecast From 25% To 8% In 2023

EBRD Worsens Ukraine's Economic Growth Forecast From 25% To 8% In 2023

The European Bank for Reconstruction and Development (EBRD) has worsened its forecast for the growth of the Ukrainian economy in 2023 from 25% to 8%.

This is stated in the report of the bank "Regional Economic Prospects," Ukrainian News Agency reports.

"For 2023, the EBRD lowered its economic recovery forecast to 8% from 25%, which was predicted in May, when it was expected that substantial recovery work would already be carried out," the document said.

The bank reports that the forecast decline is a sign of how much uncertainty about the future affects the economic outlook of Ukraine.

It is noted that although the fighting in recent months has become more concentrated and covered an area that generates only about 20% of GDP, the destruction of human capital, infrastructure and production capacity was huge.

According to the bank, Ukraine's GDP fell by 15.1% year-on-year in the first quarter of 2022 and by 37.2% in the second quarter, when the most fierce and widespread hostilities continued.

Inflation rose to 23.8% in August 2022 due to supply disruptions and a sharp increase in the budget deficit.

As Ukrainian News Agency earlier reported, the Ministry of Economy predicts a drop in GDP by 35-40% in 2022.