IMF projects Ukraine economy to grow by 2.5-3.5% in ‘25

Ukraine’s economic growth is projected to range between 2.5 and 3.5 per cent through 2025, despite the ongoing challenges of the war, according to the International Monetary Fund’s (IMF) Fifth Review of Ukraine’s 4-year Extended Fund Facility (EFF).

Ukraine’s economy has shown resilience, with real GDP increasing by 6.5 per cent year-on-year in Q1 2024, inflation at 5.4 per cent in July, and international reserves at $42.3 billion as of September 1.

However, growth is expected to slow to 3 per cent by the end of the year, with inflation rising to 9 per cent.

The IMF stressed the need for Ukraine to address energy challenges ahead of winter and increase tax revenues in 2025 to ensure fiscal sustainability.

Ongoing external financial support remains crucial for maintaining the country’s economic stability amidst high uncertainty.

Attribution: The International Monetary Fund (IMF)
Subediting: M. S. Salama