IMF upgrades outlook for Ukraine’s GDP growth in 2023 to 2%

The International Monetary Fund expects Ukraine's GDP to grow by 2% by the end of 2023, which is significantly different from the Fund's April outlook, which suggested negative dynamics at the level of -3% for the war-torn country.

This is stated in the latest edition of the World Economic Outlook (WEO), presented on Tuesday in Marrakesh by IMF’s chief economist Pierre-Olivier Gourinchas, Ukrinform's own correspondent reports.

In the section covering European countries, it is indicated that the economic growth of Ukraine in 2023 will improve to 2% in the current year, while for 2022 the indicator stands at the level of -29.1%, mainly due to the war. Back in the April outlook, the Fund cited other figures: -30.3% in 2022 and -3.0% based on current expectations. Thus, the updated calculations indicate improved dynamics for the country.

In addition, the IMF predicts that the GDP of Ukraine will grow to 3.2% next year, which points to the expectation of further stability of the national economy in the conditions of continued hostilities.

Ukraine’s consumer price index may decrease from 20.2 in 2022 to 17.7 in the present. Next year, it is expected to decrease to 13.0.

In addition, the current account balance is expected to drop from 5.0 last year to -5.7 as of the end of this year. In 2024, this trend will continue to -7.2.

It is noted that the unemployment rate in Ukraine will slightly decrease from 24.5 to 19.4 compared to 2022, which is considered a very high level characteristic of the country. At the same time, this indicator is expected to drop to 10.6 next year.

As reported by Ukrinform, citing World Bank forecasts, Ukraine's GDP growth is expected to stand at 3.5% this year. At the same time, it is noted that despite the Russian invasion, the Ukrainian economy is showing signs of moderate recovery thanks to more reliable electricity supply and stable receipt of aid from Western partners.