IMF raises Ukraine's GDP forecast for 2023 to 2%

The International Monetary Fund (IMF) has made significant changes to its forecast of Ukraine's economic development for 2023. According to the latest data, the IMF expects Ukraine's GDP to grow by 2% this year, a radical improvement from the April forecast, which predicted a 3% contraction in the country's economy.

The latest World Economic Outlook (WEO) published by the IMF provides data showing that the Ukrainian economy is strengthening this year. The previous forecast for 2022 pointed to a deep recession with a 29.1% contraction in national GDP, mainly due to the military conflict.

Compared to the April forecast, which predicted a 30.3% contraction in 2022 and a 3% contraction in 2023, this updated projected 2% GDP growth this year is noted as a significant step forward.

Next year, the IMF foresees further GDP growth of 3.2%, indicating the stability of the national economy, even in the face of the ongoing conflict in the east of the country.

In terms of other indicators, the consumer price index (CPI) in Ukraine, which stood at 20.2% in 2022, is expected to decline to 17.7% this year, and in 2024, this figure should fall to 13.0%.

The employment situation is expected to improve, as the unemployment rate in Ukraine is expected to decrease from 24.5% in 2022 to 19.4% this year. Next year, this figure is expected to decline further to 10.6%.

This revised IMF forecast reflects a positive trend in Ukraine's economic development and its ability to overcome the difficulties caused by the military conflict and other internal and external factors.