Ukraine's economy ministry expects GDP growth of up to 4% this year

The Ukrainian Economy Ministry expects Ukraine's gross domestic product to grow to 4% this year.

Ukraine's First Deputy Prime Minister, Minister of Economy Yulia Svyrydenko said this at the YES 2023 Yalta European Strategy Forum, Ukrinform reports, citing the ministry's press service.

"We predict that the inflation rate will continue to slow in the coming years. All institutions are revising their GDP growth forecasts towards an increase. The Ministry of Economy expects [GDP] growth in 2023 to be closer to 4%. This is a more optimistic forecast than the one made by the NBU, which expects GDP growth of 2.9%," she said.

Photo: Ministry of Economy

Svyrydenko noted that despite the loss of 29.6% of GDP in 2022, Ukraine managed to maintain macro-financial stability, which was ensured by support from its partners and the political decisions of the Ukrainian government. According to her, thanks to this, consumer inflation will slow down to 10.6% in 2023, and core inflation will slow down to 9%. Svyrydenko said that this is happening despite the destruction of the Nova Kakhovka dam by Russia and the return to the pre-war level of fuel taxation.

She added that in the medium term, the economy could grow by 3.5% in 2024 and 6.8% in 2025. But even despite such estimates, the economy has greater potential for recovery.

Also, according to the ministry's projections, the unemployment rate will shrink to 19% this year, 16.9% in 2024 and 14.4% in 2025.