The IMF made a statement on the economy and taxes in Ukraine

The Ukrainian economy will slow down in 2025, and tax increases are a necessary measure. The dollar to hryvnia exchange rate should reflect the market situation. The IMF announced this following the results of the fund’s mission.

Ukraine’s economy continues to show resilience despite the devastating challenges posed by Russia’s 1,000-day war against Ukraine.

Real GDP growth is forecast at 4% in 2024, but will slow to 2.5-3.5% for 2025, reflecting challenges from damaged energy infrastructure and labor shortages.

Inflation has accelerated, reaching 9.7% in October, but inflation expectations are stable.

“Risks remain very high due to uncertainty about the intensity and duration of the war, including from continued attacks on energy infrastructure,” the IMF said.

The IMF indicates that the revised state budget for 2024 and the state budget for 2025 correspond to the parameters of the program.

Next year’s budget also includes a package of tax proposals approved by the Rada, with expected revenues of around 1.6% of GDP by 2025.

The IMF said that going forward, the authorities should continue efforts to mobilize domestic revenues, and in this regard, the implementation of the National Revenue Strategy, including reducing tax evasion and improving compliance, remains the foundation of restoring fiscal sustainability, improving the business climate and meeting the weight of the climbing standard.

As you know, on October 23, Ukraine received $1.1 billion from the IMF as part of the initial, fifth revision of the EFF program for 2023-2027. Its total amount is $15.5 billion.