Uncertainty due to the war and potential delays in external financing will affect GDP, Kristalina Georgieva said.
Ukraine’s economy proved resilient during the war; last year’s macroeconomic indicators were stronger than expected. However, the recovery will slow down in 2024. This was said by the head of the IMF, Kristalina Georgieva, after the decision of the IMF Board of Directors to approve a tranche of $880 million.
“Russia’s aggression in Ukraine continues to bring enormous social and economic costs to Ukraine. However, macroeconomic and financial stability has been preserved, reflecting the sound policies of the Ukrainian authorities, as well as significant external that support,” the official said.
Ukraine’s economy will grow by 5% in 2023 after falling by 29.1% in 2022, but growth will slow to 3-4% in 2024, the IMF predicts.
“Going forward… the recovery is relatively slow due to very high risks to the outlook, mainly driven by very high uncertainty related to the war, as well as potential delays in external financing,” Georgieva said.
Ukrainian authorities should be vigilant about these risks, he added. According to him, it is very important that the external financing allocated to Ukraine by all donors is carried out in a timely and predictable manner in order to protect Ukraine’s hard-won macroeconomic stability.
As we already wrote, the Board of Directors of the International Monetary Fund approved on Thursday, March 21, the allocation of the fourth tranche to Ukraine in the amount of about $880 million under the Extended Financing Fund (EFF). The money should arrive in Ukraine within two to three days.
We would like to add that on February 28, 2024, the Council of the European Union approved the launch of the Instrument Facility of Ukraine with a total volume of 50 billion euros for 2024-2027.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.