Energy sector losses worsen economic growth forecast for 2024 - National Bank
Kyiv • UNN
Due to Russian missile strikes destroying critical infrastructure, especially in the energy sector, the National Bank of Ukraine lowered its forecast for Ukraine's economic growth in 2024 to 3%.
The Ukrainian economy is recovering, and Ukraine's real GDP continues to grow. But during the year, the risks were also realized: critical infrastructure facilities were destroyed due to missile attacks by the Russian Armed Forces. Therefore, the growth rate has decreased, reports UNN with reference to the press service of the NBU.
Details
Economic growth in the country could be more rapid, but there are a number of reasons:
Russian missile attacks caused significant destruction of critical infrastructure facilities in the spring, primarily in the energy sector. You can't restore all these items in a short time (..) there will be a periodic shortage of electricity in different regions, which, of course, will limit the economic recovery
Due to losses in the energy sector, the National Bank has lowered its forecast for economic growth - this year it is still projected to decline to 3% (previously it was about 3.6%). At the same time, it is hoped that economic growth will accelerate to 4-5% in the coming years.
It should also be noted that due to uncertainty with the receipt of international aid, the government cautiously spent budget funds in the first quarter. This has affected the economy:
- the pace of recovery slowed down;
- GDP figures at the beginning of the year were slightly worse than the NBU expected.
The regulator notes that since mid-March, assistance from international partners has intensified:
- Ukraine has received significant amounts of funds from the EU, Canada, the IMF and the World Bank;
- The EU has adopted a long-term support program for Ukraine in the amount of 50 billion euros;
- The United States has finally approved the budget to support Ukraine for 2024.
