The Ministry of Economy has worsened forecasts of Ukraineʼs GDP growth in 2023. Now they believe that the hostilities will last the whole year

The Ministry of Economy has worsened forecasts of Ukraineʼs GDP growth in 2023. Previously, there was a forecast of 3.2% growth, but now — only 1%.

This was reported by Deputy Minister of Economy Serhiy Sobolev, Interfax writes.

According to him, the forecast changed due to the assumption that the hostilities would continue throughout the year. The previous forecast was based on the fact that the active phase of the war would end by mid-summer.

Sobolev also said that the Ministry of Economy has reduced inflation forecasts.

"It seems that we have passed the peak of inflation — it is gradually starting to decrease. We forecast that it will decrease from 26.6% to 24% in 2022," he said.

• Compared to September 2022, the European Bank for Reconstruction and Development has worsened the growth forecast for Ukraineʼs economy from 8% to 1%. According to EBRD estimates, in 2023, the real volume of production in Ukraine will stabilize at the level of 70% of the pre-war level.
• The International Monetary Fund predicts that Ukraineʼs GDP will grow by 1% in 2023. At the same time, inflation will be about 25%.