NBU Governor outlines key risks to Ukraine’s economy

The National Bank of Ukraine (NBU) believes that the longer duration and intensity of the war are the key risks to the country’s economy.

The relevant statement was made by NBU Governor Andriy Pyshnyy at a briefing, an Ukrinform correspondent reports.

“As before, the key assumption of the forecast is that high security risks will persist until early 2024. The full-scale war continues. The key risk to this forecast is that the war lasts longer and is fiercer than anticipated. The above could have a significant adverse effect on economic activity, as well as worsen inflation and exchange rate expectations,” Pyshnyy told.

In his words, the war is also generating other risks, such as additional budgetary needs, difficulties with or the halt in the operation of the ‘grain corridor’, and further damage caused by Russian attacks on energy infrastructure.

“Conversely, the rapid implementation of Ukraine’s recovery project, together with European integration reforms, could significantly accelerate the pace of economic growth,” Pyshnyy stressed.

Photo: Andriy Pyshnyy, Facebook