The International Monetary Fund has upgraded its 2023 GDP growth forecast for Ukraine to 4.5% while praising the “remarkable resilience” of the country’s wartime economy. The new figure is a significant increase on the earlier forecast of growth between one and three percent.
Speaking in Polish capital Warsaw on November 10 following a meeting with Ukrainian officials, IMF representative Gavin Gray confirmed the improved economic outlook for the war-torn nation. “The Ukrainian economy continues to show remarkable resilience and further signs of stabilization as recent economic developments point to a stronger-than-expected economic recovery in 2023 and a substantial disinflation, amid strong reserves and a stable foreign exchange market. IMF staff have therefore upgraded real GDP growth for 2023 to 4.5 percent,” he commented.
The full-scale Russian invasion had a devastating impact on the Ukrainian economy, with widespread destruction, massive displacement of the civilian population, and a naval blockade of the country’s Black Sea ports contributing to an annual GDP decline of 29.1% in 2022. However, the current year has witnessed signs of stabilization throughout the Ukrainian economy, with businesses overcoming logistical challenges and adapting to wartime conditions.