Shmyhal: GDP decline in Ukraine will not exceed 35% this year
Next year, the state budget deficit is planned at the level of $38 billion, it will be covered by international tranches
What happened? Despite russia's massive strikes on the Ukrainian energy system, the drop of Ukraine's GDP in 2022 will not exceed 35%. At the beginning of the war, a 45% drop was predicted.
Source. Denys Shmyhal, Prime Minister of Ukraine, in an interview with Interfax-Ukraine.
Details. Strikes on the energy system can worsen the dynamics of Ukraine's gross domestic product for 2023 by 3-9 percentage points. According to Mr. Shmyhal, the forecast for next year was downgraded from 4.6% to 3.2%.
The Prime Minister said that the total state budget deficit next year would amount to $38 billion. It is planned to be covered by international tranches. By the end of this year, the Cabinet of Ministers expects to sign a memorandum on the provision of EUR 18 billion of macro-financial assistance from the European Union in 2023. In this case, Ukraine may receive the first tranche – EUR 3 billion – in January. At the same time, Ukraine pledged to carry out corporate governance reform by introducing OECD principles, as well as to continue anti-corruption and judicial reforms.
In addition, we expect to receive at least $10 billion more to the budget from the United States, the Prime Minister added.
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