The World Bank has downgraded its forecast for Ukraine's economic growth this year
Kyiv • UNN
Ukraine's economy is expected to grow by 3.2% in 2024, despite challenges such as the russian invasion and high inflation.
In 2024, Ukraine's economy can be expected to grow by 3.2%. UNN reports this with reference to a press release from the World Bank.
Details
The World Bank forecasts that Ukraine's economy will grow by 3.2% in 2024. For comparison, in October 2023, the World Bank forecasted that Ukraine's GDP would grow by 4.0% in 2024.
Ukraine's economic growth forecast for 2025 is 6.5%, which is the highest in the Europe and Central Asia region.
It is noted that in 2023, growth rates in Eastern Europe returned to a positive trend. In particular, in Ukraine, growth rates increased to 4.8% after a sharp decline in 2022 due to improved access to electricity, a bumper harvest, and additional government spending. However, Ukraine's production in 2023 remained 30% below the level before the Russian invasion.
Geopolitical risks in the region, including an escalation of the russian federation's invasion of Ukraine, are elevated and could materialize, exacerbating the already significant human and economic losses. Higher-than-expected inflation may keep monetary policy tightening in place for longer
Recall
According to the World Bank, the global economy is on track for the worst half of the year for growth in 30 years. The World Bank's latest Global Economic Prospects report predicts that global growth will slow for the third consecutive year. In 2024, it will decline to 2.4% from 2.6% in 2023.