In the first quarter of 2024, Ukraine's economic growth slowed due to budget cuts and the blockade of the border, but the stabilization of the sea corridor and the growth of domestic demand helped support the economy, UNN writes, citing NBU data.
Details
According to the NBU, Ukraine's real GDP growth in the first quarter of 2024 was weaker than expected, mainly due to restrictions on budget spending due to uncertainty over external financing. In addition, the blockade of the western border put pressure on economic activity. However, the stability of the maritime corridor, favorable weather conditions, and rising domestic demand helped to support economic growth.
"The NBU forecasts a further recovery in economic activity, given the recent progress in obtaining international assistance, which will allow the NBU to maintain a loose fiscal policy, as well as the expected recovery in domestic and external demand," the report says.
Ukraine's real GDP growth forecast was downgraded due to the impact of Russia's large-scale attacks on the country's energy infrastructure. The economy is now expected to grow by 3% in 2024, and by 4.5-5% in 2025-2026.
Recall
The Governor of the National Bank of Ukraine saidthat the situation on the foreign exchange market is under control and security risks have decreased after the US Congress provided financial support.