Minister Marchenko: GDP growth this year forecasted at 4.7%

Ukraine's economy demonstrated resilience this year, its growth is expected to reach 4.7%.

Finance Minister of Ukraine Sergii Marchenko said this at the meeting of the G7 financial bloc, the press service of the Ministry of Finance reports.

In his speech, the minister spoke about the current state of Ukraine's economy, the need for external financing for the next year, including for social protection and humanitarian aid.

"Ukraine's economy has demonstrated resilience this year. GDP growth is forecast to reach 4.7%. Inflation is declining faster than expected, to 7.1% in September 2023 from 26.6% in 2022. Domestic borrowing exceeded the plan and has already reached over USD 11 billion since the beginning of the year. Thanks to our partners, international financial support is rhythmic and predictable, totaling USD 33.8 billion in 2023," Marchenko said.

He emphasized that the uncertainty caused by the war remains. Strong external support continues to be vital for Ukraine. Ensuring timely budget execution is an important prerequisite for supporting the population and resisting the aggressor.

Regarding 2024, Marchenko emphasized that the 2024 budget envisages the accumulation of maximum resources for the security and defense sector, with expenditures at the current year's level, as well as creating conditions for the development of the domestic defense industry. At the same time, the budget envisages an increase in spending on social protection and humanitarian aid, as supporting Ukrainians is an important priority for the Government of Ukraine. The State Budget deficit is projected at USD 42.9 billion.

"I am extremely grateful to our partners for their assurances of continued support for the next year. We already have a number of agreements with countries such as Japan and the UK. Also, Ukraine and the EU are actively working on the launching of the Ukraine Facility for 2024-2027 with a total amount of EUR 50 billion. If Ukraine performs the conditions set in cooperation with the IMF, it will receive USD 5.4 billion under the EFF program next year. However, even taking into account all these commitments, the deficit remains high," the finance minister added.

As reported, the Annual Meetings of the World Bank Group and International Monetary Fund started in Morocco on October 9. Among the most important topics are the impact of the Russian war on the global economy, the continuation of financial support for Ukraine, challenges for food security.